Capital at risk
Japan All Cap
Japan offers the unexpected. Global leading manufacturers, premium Asian brands and emerging digital disruptors.
The Japan All Cap Strategy looks beneath the surface and beyond the headlines to capture these opportunities. Each portfolio holding is selected on its own merits and long-term earnings growth potential.
Backing businesses, not the economy
By focusing on the fundamentals, we aim to uncover Japan’s mispriced and often underappreciated opportunities.
Japanese Equities: our philosophy
Investment manager Donald Farquharson introduces Japanese Equities, reflecting on the exciting opportunities ahead.
Aiming for outperformance
Japan All Cap is long-term focused. We aim to outperform the TOPIX Index by 2 per cent per annum over rolling five-year periods.
Our portfolio contains 45-65 holdings. We seek to take advantage of market inefficiencies by investing across different types of growth company which, given our time horizon, allows us the opportunity to take advantage of their idiosyncratic growth opportunities.
We find these companies through bottom-up research, holding on for the long term and aiming to capture the benefits of compounded growth.
Being patient with potential
We aim to capture growth in all its forms – from secular opportunities in emerging digital disruptors to the enduring growth of stalwart franchises to special situations of corporate reform.
The patience with which we pursue this broad base of potential is a product of our pedigree. Having launched specialist mandates in the 1980s, we’re one of the few who’ve been doing this for over 40 years.
Our experience of Japan’s rich history offers us an insight into the significant structural changes at play here.
A classic analogy for competitive advantage is moats: we’re not interested in how deep the moat will be in the immediate future but in how deep it will be in five years’ time and beyond.
Meet the managers
Matthew Brett
Investment ManagerMatthew is an investment manager in the Japanese Equities Team. He is co-manager of the Japan All Cap Strategy, the Japanese Income Growth Strategy and manager of the Baillie Gifford Japan Trust. He joined Baillie Gifford in 2003 and became a partner of the firm in 2018. Matthew graduated BA (Hons) in Natural Sciences (Psychology) from the University of Cambridge in 2000 and holds a PhD in Psychology from the University of Bristol.
Jared Anderson
Investment ManagerJared Anderson is an investment manager in the Japanese Equities Team. He is co-manager of Japan All Cap Strategy and Japanese Smaller Companies Strategy, and deputy manager of the Shin Nippon Investment Trust. Jared joined Baillie Gifford in 2016. Prior to joining the firm he spent two years as an Assistant Economist at the Scottish Government. Jared graduated MA (Hons) in Economics from the University of Edinburgh in 2012.
Documents
Philosophy and process
Explore our investment philosophy and the processes around how the team constructs the portfolio.
Stewardship report
Find out about our conversations with portfolio companies, shareholder vote activity and consideration of environmental, social and governance matters.
Quarterly update
Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting.
Invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Strategy portfolio holdings
A list of the top 10 holdings that the representative portfolio invests in.
All figures up to: 31 October 2025
| # | Holding | % of total assets |
|---|---|---|
| 1 | SoftBank Group | 8.9% |
| 2 | SBI Holdings | 5.7% |
| 3 | Sumitomo Mitsui Trust | 5.0% |
| 4 | Rakuten | 4.8% |
| 5 | Sony | 3.8% |
| 6 | CyberAgent | 3.6% |
| 7 | Nintendo | 3.2% |
| 8 | GMO Internet | 3.2% |
| 9 | Bridgestone | 2.6% |
| 10 | FANUC | 2.5% |
Please note
The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co. Please note that totals may not add due to rounding.
Invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Insights
Key articles, videos and podcasts relating to the strategy:
Filters
Insights
SMC: Stock Story
Sarah Clark explores how SMC powers automation with precision pneumatics with engineering excellence.
Humanoid: Japan and the rise of the machine
Humanoids have been a long time coming, allowing Japan to build a world-class edge in robotic components.
Japanese Equities Q3 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.
Engagement and activism in Japan
Japan’s governance has had its ups and downs, but accelerating corporate reform is unlocking real investor value.
Tour de France: the Japanese connection
Bicycle parts maker Shimano is primed for a gear shift in performance.
Japan All Cap Q2 update
Investment manager Jared Anderson reflects on recent performance, portfolio changes and market developments.
Actual investing revisited
In this keynote paper Partner Stuart Dunbar reaffirms the importance of active management to healthy capitalism.
Japan All Cap Q1 update
The Japan All Cap Team reflects on recent performance, portfolio changes and market developments.
Healthy returns: Japan’s assault on old-age disease
Japanese medical firms are making advances that could help fight cancer and Alzheimer’s.
Japan All Cap Q4 update
The Japan All Cap Team reflects on recent performance, portfolio changes and market developments.
Rakuten: rewiring Japan’s digital economy
Conglomerates can be clunky, but not so Rakuten. Matthew Brett and Colossus on how it is connecting the dots. Capital at risk.
Our best ideas in Japan
Thomas Patchett unwraps Softbank, Rakuten and Eisai, three companies driving new opportunities in Japan.
Japan: opportunities in automation
Japan's automation revolution and its global leadership in robotics.
Japan: opportunities in healthcare
Japan’s innovation medical breakthroughs are combatting ageing.
Japan: opportunities in quality brands
Behind the success of Japan’s leading quality brands and what opportunities they present.
Japan: opportunities in entertainment
Japan's media giants: Sony and Nintendo's timeless influence.
Japanese changemakers shaping the future
The firms taking advantage of four transformational opportunities.
Japan: the next opportunity
Explore Japan's market evolution, digitalization, and investment opportunities in unique growth themes.
China through a Japanese lens
Japanese tech dominance is under increasing pressure in China from domestic challengers.
The fresh face of Japanese finance
New online services are transforming Japanese financial habits.
Stock story: SoftBank
Matthew Brett discusses SoftBank and considers Japan’s exciting technological future.
Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
Spotting the stars amid a surge
Rising Japanese markets are flattering old-style companies: better to look for long-term growth.
Japan’s new growth opportunities
Seeking the entrepreneurial firms that could sustain the country’s rally.
Japanese Equities
Investment manager, Donald Farquharson, discusses the Baillie Gifford approach to Japanese Equities.
Japan’s place in the chip market
The Japanese semiconductor companies set to benefit from the rise of 5G and electric cars.
Japanese changemakers shaping the future
SMC: Stock Story
Sarah Clark explores how SMC powers automation with precision pneumatics with engineering excellence.Humanoid: Japan and the rise of the machine
Humanoids have been a long time coming, allowing Japan to build a world-class edge in robotic components.Japanese Equities Q3 update
Investment specialist Alison Henry reflects on recent performance, portfolio changes and market developments.Engagement and activism in Japan
Japan’s governance has had its ups and downs, but accelerating corporate reform is unlocking real investor value.Tour de France: the Japanese connection
Bicycle parts maker Shimano is primed for a gear shift in performance.Japan All Cap Q2 update
Investment manager Jared Anderson reflects on recent performance, portfolio changes and market developments.Actual investing revisited
In this keynote paper Partner Stuart Dunbar reaffirms the importance of active management to healthy capitalism.Japan All Cap Q1 update
The Japan All Cap Team reflects on recent performance, portfolio changes and market developments.Healthy returns: Japan’s assault on old-age disease
Japanese medical firms are making advances that could help fight cancer and Alzheimer’s.Japan All Cap Q4 update
The Japan All Cap Team reflects on recent performance, portfolio changes and market developments.Rakuten: rewiring Japan’s digital economy
Conglomerates can be clunky, but not so Rakuten. Matthew Brett and Colossus on how it is connecting the dots. Capital at risk.Our best ideas in Japan
Thomas Patchett unwraps Softbank, Rakuten and Eisai, three companies driving new opportunities in Japan.Japan: opportunities in automation
Japan's automation revolution and its global leadership in robotics.Japan: opportunities in healthcare
Japan’s innovation medical breakthroughs are combatting ageing.Japan: opportunities in quality brands
Behind the success of Japan’s leading quality brands and what opportunities they present.Japan: opportunities in entertainment
Japan's media giants: Sony and Nintendo's timeless influence.Japanese changemakers shaping the future
The firms taking advantage of four transformational opportunities.Japan: the next opportunity
Explore Japan's market evolution, digitalization, and investment opportunities in unique growth themes.China through a Japanese lens
Japanese tech dominance is under increasing pressure in China from domestic challengers.The fresh face of Japanese finance
New online services are transforming Japanese financial habits.Stock story: SoftBank
Matthew Brett discusses SoftBank and considers Japan’s exciting technological future.Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.Spotting the stars amid a surge
Rising Japanese markets are flattering old-style companies: better to look for long-term growth.Japan’s new growth opportunities
Seeking the entrepreneurial firms that could sustain the country’s rally.Japanese Equities
Investment manager, Donald Farquharson, discusses the Baillie Gifford approach to Japanese Equities.Japan’s place in the chip market
The Japanese semiconductor companies set to benefit from the rise of 5G and electric cars.
Invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
How to invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK clients and is authorised and regulated by the UK Financial Conduct Authority. Baillie Gifford Overseas Limited is not licensed under the Regulation of Investment Advising, Investment Marketing and Portfolio Management Law, 5755-1995 (the “Advice Law”) and does not carry insurance pursuant to the Advice Law.
Baillie Gifford Overseas Limited markets and distributes Baillie Gifford’s range of collective investment schemes to Qualified Clients and Qualified Investors in Israel, as listed in the First Addendum to the Regulation of Investment Advising, Investment Marketing and Portfolio Management Law, 5755-1995 (the “Advice Law”) and in the First Addendum to the Israel Securities Law, 5728-1968 (the “Securities Law”). Detailed disclosure of the collective investment schemes can be found within this website and in the relevant scheme prospectus.
Baillie Gifford Overseas Limited does not provide investment advice. If you are in any doubt about whether an investment is suitable, you should seek independent advice.
No action has been or will be taken in Israel that would permit a public offering or distribution of the Funds mentioned in this website to the public in Israel. This website and the Funds mentioned herein have not been approved by the Israeli Securities Authority (the “ISA”). In addition, the Funds mentioned in this website are not regulated under the provisions of Israel’s Joint Investment Trusts law, 5754-1994 (the “Joint Investment Trusts Law”). This website and the Funds mentioned herein will only be distributed to Israeli residents in reliance on an exemption from any advice or marketing restrictions [in a manner that will not constitute “an offer to the public” under sections 15 and 15a of]/[in reliance on an exemption from the prospectus requirements under] the Israel Securities Law, 5728-1968 (the “Securities Law”) or the Joint Investment Trusts Law, and any guidelines, pronouncements or rulings issued from time to time by the ISA as applicable.