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Verdad Advisers to target Japan small-caps with new hedge fund launch

September 24, 2025 at 4:02 pm

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Boston-based hedge fund Verdad Advisers is preparing to launch a new Japan-focused equity fund targeting small-cap companies, continuing its strategy of exploiting capital inefficiencies in less-followed stocks, according to a report by Bloomberg.

The fund could launch later this year and will focus on firms with market caps above $400m, expanding beyond the micro-cap space where Verdad’s existing two funds have delivered strong returns.

Founder Daniel Rasmussen highlighted opportunities in smaller Japanese equities, noting that large-cap stocks are far more efficiently priced. Verdad’s current micro-cap funds have returned 39% through August, lifting combined assets under management to $300 million. The new fund aims to reach over $1 billion in AUM within the coming years.

The fund’s expansion will include hiring one to two analysts in Japan to focus on both fundamental and quantitative research.