Activist hedge fund Palliser Capital has increased its holding in Taiwanese printed circuit board maker WUS Printed Circuit, as the firm steps up its search for undervalued companies positioned to benefit from the AI boom across Taiwan and Japan, according to a report by Bloomberg.
The report cites a recent regulatory foiling as showing that Palliser, founded by former Elliott Investment Management executive James Smith, raised its WUS stake to more than 5% from 4.3%, making it a major shareholder under Taiwanese exchange rules.
The London-based activist had already called on WUS in June to consider measures to improve shareholder value, including a potential privatisation of the company.
Smith, Palliser’s founder and chief investment officer, said Taiwan is currently one of the firm’s most attractive investment markets, with AI and the Nvidia supply chain creating a particularly compelling pool of opportunities. He said Palliser already has several potential new targets under consideration.
WUS, which is based in Kaohsiung and manufactures advanced circuit boards used in data centres, fits the investment profile Palliser typically seeks. Smith said the fund generally focuses on companies with valuations of about $1bn to $10bn where it sees substantial scope for a re-rating.
He also pointed to WUS’s shareholder structure, noting that the company does not have a family or government shareholder controlling at least half of the business.
Smith argued that WUS remains significantly undervalued despite operating in a sector benefiting from strong structural demand. Limited analyst coverage and what he described as a substantial gap in market understanding of the company’s valuation were among the factors attracting Palliser.
Beyond technology, Palliser sees potential in Taiwan’s financial and property sectors, where consolidation could provide opportunities to unlock value for shareholders.
The fund has also been building an activist presence in Japan, where it has disclosed investments in Ajinomoto and Toto. Palliser has pushed Ajinomoto to raise prices for its semiconductor insulation materials, while urging Toto to make greater efforts to highlight its semiconductor components operations.
Smith said Japan remains an important hunting ground for the firm, particularly among companies with strong products and market positions that can be overlooked because of complex corporate structures or insufficient investor understanding.
He also highlighted a shift in the attitude of Japanese corporate leaders towards engagement with overseas investors. According to Smith, senior executives at large Japanese companies are now increasingly willing to meet international shareholders, contrasting with the difficulty of securing such meetings several years ago.
