RFM, a newly launched hedge fund focused on Japanese equities, has attracted more than $800m in assets within its first year of operation, reflecting strong investor appetite for Japan’s equity markets amid robust performance and structural reform momentum, according to a report by Bloomberg.
The fund was established earlier this year by Teruhiko Nishimura, formerly a portfolio manager at Pictet Asset Management Japan and Dymon Asia Capital Japan. The size of the raise is notable for a Japan-focused hedge fund and highlights renewed global interest in the market from both institutional and international investors.
Foreign investors have been significant buyers of Japanese equities in 2025, purchasing a net JPY5.4tn ($34.6bn) of stocks so far this year, marking the largest annual inflow since 2013. Japan’s benchmark Nikkei 225 index has risen by nearly 27% year to date, supported by improving corporate governance standards and reforms aimed at boosting capital efficiency and shareholder returns.
Market participants also point to rising geopolitical tensions between the US and China as a factor encouraging US-based investors to reallocate capital towards Japan, which is increasingly viewed as a stable alternative within Asia.
The favourable market backdrop has coincided with a growing number of hedge fund launches focused on Japan, as experienced portfolio managers seek to capitalise on the structural changes underway. Earlier this year, former Point72 Asset Management Japan head Tomohiro Yamaguchi launched Invictus Investment Partners, a Japan-focused hedge fund based in Hong Kong, alongside former Citadel portfolio manager Takeo Serizawa.
The successful launch of RFM adds to evidence that Japan has re-emerged as a key destination for global hedge fund capital, supported by strong equity market performance, governance reform and shifting regional investment flows.
