Oasis Management Company Ltd. is a Hong Kong-based hedge fund established in 2002 by Seth Fischer. The firm conducts global investments with a particular focus on Asian markets, operating in Japan, Korea, Hong Kong, and other regions. With offices in Tokyo, Austin (USA), and the Cayman Islands, it is an asset management company employing over 40 specialists.

The company is known as an "activist shareholder," characterized by making proposals to improve management and enhance shareholder value in its investment targets. In 2020, the company established the "Oasis Japan Strategic Fund" focused on Japan and actively invests in Japanese companies. Founder Seth Fischer leads the company as Chief Investment Officer (CIO) and is also active as a promoter of corporate governance reform in Asia.

Business Model

Oasis Management adopts a model that seeks profits by collecting assets from investors as a hedge fund and investing them in global markets, particularly in Asian markets.

It primarily serves institutional investors and high-net-worth individuals, with a management approach centered on activist investing. Revenue sources consist of management fees (typically around 2%) and performance fees (generally about 20% of profits), based on the so-called "2-and-20" model.

The company aims to increase the stock prices of invested companies by promoting improvements in corporate governance and maximizing shareholder value, particularly in Japanese and Asian companies. Thus, rather than passive investment, its approach is characterized by actively influencing corporate management.

Investment Methods

Oasis Management's investment approach consists primarily of the following elements:

1. Activist Investing

   • After acquiring shares in target companies, they propose specific improvement plans to management. For example, they often demand shareholder returns (dividends or share buybacks) of excessive internal reserves, sale of inefficient businesses, or renewal of management.
   • For Japanese companies, they work to reform governance structures traditionally considered to undervalue shareholders, aiming to resolve gaps between market value and corporate value (valuation distortions).
   • They utilize active communication through open letters, statements at shareholder meetings, and pressure through media.

2. Long-Short Strategy

   • While activist investing is their main focus, they also adopt hedge fund-like methods combining long and short positions depending on market conditions. This allows them to pursue returns on individual stocks while mitigating the risk of overall market decline.

3. Deep Research-Based Investment

   • They thoroughly analyze the financial situation, industry trends, and competitive environment of investment targets to identify overlooked value and room for improvement. They are particularly adept at capturing opportunities that other investors miss by utilizing information gaps and inefficiencies in Asian markets.

Specialization in the Japanese Market

As many Japanese companies are cash-rich but insufficient in shareholder returns, Oasis focuses on such companies and encourages effective cash utilization and corporate value enhancement through shareholder proposals. For example, there have been past cases where Oasis was involved with Toshiba Machine (now Shibaura Machine) and Panasonic.

Oasis's strengths lie in its deep understanding of Asian markets and its team experienced in activist investing. They are particularly knowledgeable about Japanese corporate culture and regulatory environment, differentiating themselves from others by being able to effectively dialogue with local stakeholders. Additionally, under the leadership of founder Seth Fischer, their clear investment philosophy and execution capability are highly regarded.

Thus, Oasis Management is a unique hedge fund that pursues enhancement of corporate and shareholder value through activist investing, with particular prominence in the Japanese market.

5 Investment Cases by Oasis

Oasis Management Company Ltd. has implemented numerous activist investment cases, particularly in Asian markets centered on Japan. Below are five representative cases where Oasis actively engaged to demand improvements in corporate value and governance.

1. Toshiba Machine (now Shibaura Machine): Around 2017

Oasis's Specific Improvement Proposals

• Strengthening Shareholder Returns: Oasis proposed utilizing Toshiba Machine's substantial cash holdings (cash-rich financial structure) to significantly increase share buybacks and dividends. In particular, they pointed out that cash was not being sufficiently utilized for business growth and demanded prioritization of returns to shareholders.
• Reconsideration of Management Strategy: Proposed selling non-core businesses and restructuring low-profitability divisions. Demanded a strategy focusing on the machine tool business to enhance competitiveness.
• Governance Improvement: Demanded improving board independence and strengthening dialogue with shareholders to enhance management transparency.

Changes at Toshiba Machine

• Implementation of Shareholder Return Measures: Under pressure from Oasis, Toshiba Machine conducted share buybacks in 2018 and increased its dividend payout ratio from previous levels. This strengthened cash returns to shareholders.
• Progress in Business Restructuring: The company proceeded with reviewing inefficient businesses and sold some assets. Management also clarified its medium to long-term growth strategy and strengthened accountability to shareholders.
• Results: These measures led to an increase in stock price (specific increase rate is not public, but it was well-received in the market). After achieving its goals, Oasis sold its shares around 2019, securing profits and closing its position. This case attracted attention as a successful example of activist investing in Japanese companies.

2. Panasonic: 2017

Oasis's Specific Improvement Proposals

• Raising the PanaHome Acquisition Price: Argued that the tender offer price was too low when Panasonic made PanaHome (now Panasonic Homes) a wholly-owned subsidiary. Demanded a price revision to protect the interests of minority shareholders.
• Governance Reform: Proposed improving transparency in subsidiary management and preventing improper value transfers by the parent company.

Panasonic's Changes

• Acquisition Price Adjustment: After Oasis's proposal, Panasonic revised its initial acquisition price of 1,200 yen per share to over 1,300 yen per share (the specific final price was adjusted). This strengthened consideration for minority shareholders.
• Improvement in Shareholder Dialogue: Panasonic increased communication with shareholders and demonstrated a commitment to strengthening accountability in M&A processes.
• Results: Oasis's claims were partially accepted, resulting in a favorable outcome for minority shareholders. After achieving its goals, Oasis secured certain profits and withdrew.

3. Kao: 2024

Oasis's Specific Improvement Proposals

• Redefining Brand Portfolio: Proposed selling low-profitability brands and businesses, demanding concentration of management resources on core cosmetics and daily necessities.
• Strengthening Overseas Marketing: Aimed to improve competitiveness in global markets, proposing expanded advertising investment particularly in Asia and Western markets.
• Shareholder Returns: Demanded increasing dividend payout ratio and share buybacks, claiming potential stock price increases of 76% to 97%.

Kao's Changes

• Business Review Consideration: In response to Oasis's proposals, Kao began considering reorganization of some non-core businesses in 2024. Specifically, it explored the possibility of downsizing or selling low-profit divisions.
• Strengthening Global Strategy: Increased marketing budget in overseas markets, particularly accelerating brand development in Asia.
• Progress in Shareholder Returns: Dividend policy was reviewed, and strengthening of shareholder return measures was suggested, but specific implementation is expected after 2025.
• Results: Although the stock price showed some increase after the proposal, reforms are still in progress and Oasis has not fully achieved its goals.

4. Kusuri no Aoki: 2024

Oasis's Specific Improvement Proposals

• Holding Management Accountable: Raised concerns about the president and vice president acquiring stock options at prices significantly below market value in 2020. Filed a lawsuit seeking approximately 7.2 billion yen in damages.
• Governance Reform: Demanded strengthening board independence and reviewing management compensation systems, proposing protection of minority shareholder interests.

Kusuri no Aoki's Changes

• Lawsuit Response: While fighting the lawsuit, Kusuri no Aoki was forced to review its governance. Specifically, it considered transparency measures such as establishing a compensation committee.
• Management Response: Accountability for the stock option issue was demanded, and discussions at shareholder meetings became more active.
• Results: The lawsuit is still pending with no conclusion, but governance improvement has accelerated due to Oasis's pressure. Direct impact on stock price has been limited.

5. Kobayashi Pharmaceutical: 2024

Oasis's Specific Improvement Proposals

• Management Renewal: Demanded the replacement of responsible management to restore trust after the red yeast rice supplement health damage scandal.
• Strengthening Quality Control: Proposed strengthening manufacturing process audits and introducing third-party checking systems.
• Business Restructuring: Demanded selling non-core businesses and focusing on core businesses to restore shareholder value.

Kobayashi Pharmaceutical's Changes

• Quality Control Review: After the scandal, Kobayashi Pharmaceutical announced strengthening of its quality control department and introduction of external audits.
• Management Response: Resignation of some executives was considered, but as of March 2025, significant renewal has not been implemented.
• Business Strategy Adjustment: Review of non-core businesses was discussed, and downsizing of some product lines was implemented.
• Results: After dropping due to the scandal, the stock price showed some recovery with Oasis's involvement. However, reforms are in the early stages, and complete results are yet to come.

How to Enter Activist Investing?

• Typical Background:
  Many activists come from investment banking (IBD) backgrounds or have private equity (PE) experience, possessing strong skills in financial analysis and corporate valuation.
  There are also many MBA holders, with notable individuals who have honed their strategic thinking and leadership at top US schools. Additionally, those from consulting firms (such as McKinsey or BCG) are valued for their industry analysis and ability to propose management improvements.
  For example, Oasis founder Seth Fischer leveraged his investment banking experience to make a name for himself in the activist world.

• Required Skills:
  Financial modeling, corporate strategy development, negotiation skills, and a shareholder perspective are essential. Particularly when targeting the Japanese market, understanding corporate governance and Japanese corporate culture also becomes an important differentiating factor.

What Questions Are Asked in Activist Interviews?

If you're aiming to become an activist, the following questions are commonly asked in hedge fund and investment company interviews:

• "Explain why you believe a certain company's stock is undervalued."
  → Specific logic based on financial statement analysis and market environment is required.

• "What improvement proposals would you make to an investment target company?"
  → Specificity and feasibility of shareholder return measures and business restructuring are evaluated.

• "Describe an investment decision failure and what you learned from it."
  → Self-analytical ability and desire for growth are observed.

• "How would you improve Japanese corporate governance?"
  → Region-specific knowledge and insight are tested.

To address these questions, financial technical preparation and deep industry knowledge are essential. Since there are limitations to self-study, seeking professional support is wise.

Steps to Becoming an Activist

1. Gain Relevant Experience: Practical experience in investment banking or consulting is ideal. If inexperienced, create a foothold through financial qualifications (such as CFA) or internships.

2. Refine Skills: Strengthen financial modeling in Excel, presentation skills, and English proficiency. GMAT preparation is also important if aiming for an MBA.

3. Build Networks: Connect with activist investors through industry events and LinkedIn for information gathering.

4. Job Hunting/Career Change Strategy: Polish your self-presentation on resumes and in interviews, preparing specifically for target companies.

However, pursuing these steps alone requires significant time and effort. That's why I'd like to recommend Alpha Advisors' job hunting and career change support.

Alpha Advisors Support

Alpha Advisors is a group of professionals supporting successful job applications in competitive industries such as investment banking, consulting, and hedge funds. Our features include:

• Personalized Guidance: Providing resume editing, mock interviews, and case preparation tailored to each individual.

• Success Record: Numerous successful placements at Goldman Sachs, Morgan Stanley, McKinsey, and activist funds such as Oasis.

• Mentor Team: Direct guidance from current professionals at the top of the industry.

Student Testimonials

• 30s Male from General Trading Company (Investment Banking Offer): "Learning financial modeling from scratch with Alpha's mentors gave me confidence in interviews. I now have clear steps toward becoming an activist!"

• 40s Male from Japanese Securities Company (MBA Acceptance): "With comprehensive support from GMAT preparation to essays, I was accepted to a top school. I aim to become an activist in the future."

• 20s Female from Medical Representative Background (Hedge Fund Offer): "I was able to propose specific corporate improvement plans in case interviews and secured an offer."

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