Boutique Investment Firm Shuts Japan Office

(Bloomberg) -- Dalton Capital Japan, a subsidiary of Dalton Strategic Partnership LLP, said it will shut its Tokyo office, citing Brexit and shrinking demand from European investors.

“As we expect the business environment to toughen due to Brexit and given dwindling appetite in Japanese equities from European investors, operations will be consolidated with Dalton Strategic Partnership in London,” the asset manager said in an emailed statement.

Operations at its Japan unit will end as of Sept. 17 and the office will later be dissolved, the statement said. Dalton, a London-based boutique investment firm, started managing Japanese equities in 2003 and set up a Japan office in 2013, according to the company.

The Topix is up 3.8% so far this year and is one of the worst performing benchmarks among 24 developed-market peers tracked by Bloomberg.

To contact the reporters on this story: Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net;Min Jeong Lee in Tokyo at mlee754@bloomberg.net

To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Teo Chian Wei

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