Japan Smaller Capitalization Fund, Inc. (NYSE:JOF) experienced a notable increase in short interest, rising by 36.7% during December. As of December 31, 2023, the short interest stood at 23,852 shares, up from 17,449 shares reported on December 15, 2023. With an average daily trading volume of 45,848 shares, the days-to-cover ratio is currently 0.5 days, indicating a relatively low level of short selling, with just 0.1% of the company’s shares currently shorted.
Institutional Activity Reflects Growing Interest
A range of hedge funds has recently adjusted their positions in Japan Smaller Capitalization Fund, further indicating investor interest. Bank of America Corp DE increased its holdings in the fund by a remarkable 144.7% during the fourth quarter, now owning a total of 5,138 shares valued at approximately $39,000 after acquiring an additional 3,038 shares.
Additionally, Triasima Portfolio Management Inc. raised its stake in the fund by 32.8% in the third quarter, now holding 15,800 shares valued at around $167,000. CIBC Bancorp USA Inc. also entered the market, purchasing a new stake worth $215,000 during the same period. Mills Wealth Advisors LLC increased its position by 9.1% in the second quarter, bringing its total shares to 24,851, valued at $240,000 after buying an additional 2,070 shares. Lastly, Sax Wealth Advisors LLC made a new investment in the fund in the fourth quarter, valued at approximately $302,000.
Market Performance and Dividend Announcement
On Monday, shares of Japan Smaller Capitalization Fund increased by $0.04, reaching $11.32. The trading volume for the day was 89,590 shares, surpassing the average volume of 73,873 shares. Over the past year, the stock has seen a low of $7.43 and a high of $11.36. The stock’s 50-day simple moving average is currently $10.74, while the 200-day simple moving average stands at $10.47.
Japan Smaller Capitalization Fund is a closed-end investment company based in the U.S. that focuses on long-term capital appreciation by investing in Japan’s smaller capitalization equities. The fund aims to identify companies whose market valuations and growth potential may be overlooked by broader market indices, thereby providing investors with unique access to domestic growth opportunities in Japan. The portfolio primarily consists of equity securities listed on the Tokyo Stock Exchange and other recognized markets, concentrating on firms beyond the large-cap segment.
As the fund continues to attract institutional interest and sees changes in short interest, it remains positioned within a dynamic market landscape. Investors are encouraged to monitor developments closely as the fund seeks to leverage growth opportunities in the Japanese market.
