Gottex Fund Cuts Bets on Small Japanese Companies After Rally

Gottex Fund Management Holdings, which allocates $6.4 billion to hedge funds, has cut its largest Asia fund’s bets on small Japanese companies whose share prices may fall more sharply in the market correction.

The $250 million Penjing Asia Fund now allocates two-thirds of its Japan investments with managers that focus on large companies, which have appreciated less in the recent rally and are likely to benefit from rising corporate activities, Max Gottschalk, Gottex’s Asia chief executive officer, said in an interview yesterday. That compared with an equal split at the end of December.