Singapore-based hedge fund Kings Court Capital, which delivered an impressive 33% return last year, is making a big bet on Suzuki Motor Corp, citing the Japanese automaker’s strong India strategy as a shield against global trade risks, according to a report by Bloomberg.
The report cites Yu Liu, the firm’s Chief Investment Officer, as saying that Suzuki’s limited exposure to the US and China makes it well-positioned to weather trade tensions, including the 25% tariffs that US President Donald Trump has proposed. Additionally, Suzuki is expected to avoid the intensifying price war in the electric vehicle (EV) sector, fuelled by Chinese giants like BYD Co.
“Being a Japanese company listed in Japan but having a very significant profit exposure to India is something that we feel very good about,” Liu said on Thursday. A former Goldman Sachs Auto Analyst, Liu also noted that Suzuki’s commitment to internal combustion engines and hybrids aligns with India’s long-term demand, where gasoline and hybrid vehicles remain the dominant choice for consumers.
Kings Court Capital, which manages $400m using a long-short equity strategy, allocates 70% of its portfolio to Japanese stocks and 15% to China. Suzuki, along with Sony Group and Hikari Tsushin, has consistently been among the fund’s top three long positions over the past two years.
The hedge fund’s 33% return in 2024 outperformed its benchmark, the MSCI AC Asia Pacific Net Total Return USD Index, which gained just 9.6%. Suzuki’s stock has more than doubled since its 2022 low, significantly outperforming the MSCI World Auto Index’s 2.9% rise.
