‘Our best stock has gone up 13 times since we bought it’

We are a long-term, growth-oriented fund with holdings in a small number of companies that we do not change very often. Our returns will be very volatile as the fund only invests in a few stocks. We don’t follow other investors and even when the market has been against us, we have stuck with our philosophy. Since this fund has launched we have never had exposure to companies that rely on exporting goods, or financials. We have always been 100pc focused on Japanese domestic stocks. Tourism is the most obvious area. It has been a big industry in Japan over the past few years. Chinese tourists account for about 5pc of all visitors to the country.

So far it’s been OK and the ChinaAmerica trade war hasn’t stopped the tourists coming. But there is also a trade war between South Korea and America, and last month the number of Korean tourists dropped 40pc compared with a year ago. They account for a much smaller percentage of tourists to Japan, but the warning signs are there. M3 operates a medical website that connects drug makers with doctors and provides drug information.

It has also launched new businesses, such as job placement services for

by 13 times. I have also owned Pan Pacific International, a discount retailer, for 23 years and we made six times our money.

The worst period was from 2005 to 2009. There were a lot of new, fast-growing companies but one of the most popular stocks – Livedoor – went bust. Investors took their anger out on all small and mid-cap stocks and sold them aggressively. For four years we really struggled.

At that time the property market was also booming and we invested in a few young property companies but

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