Group 1 - Orbis International Equity Fund has doubled its investment in Japanese stocks, increasing the allocation from 10% to 24%, resulting in a year-to-date return of 16% [1][2] - The fund manager, Graeme Foster, highlights that the depreciation of the yen over the past decade has led to undervaluation of Japanese companies, creating a "golden pit" of investment opportunities [1][2] - The yen has appreciated nearly 10% against the dollar this year, making it the best-performing major currency globally, which is expected to provide "dual benefits" for foreign investors in Japanese import-oriented companies [1][2] Group 2 - Foster has allocated 4% of the fund to the Japanese pharmacy sector, focusing on companies like Tsuruha Holdings and Sundrug, which are expected to benefit from increased market concentration and bargaining power [2] - The fund holds significant positions in Asahi Group and Mitsubishi Estate, with the former showing a 40% dividend payout ratio and stock buyback plan, while the latter benefits from rising rental prices [2] - Outside of Japan, the fund has also seen gains from European defense and banking sectors, although it has exited positions in Rheinmetall due to high gains, while maintaining holdings in Hanwha Aerospace and Mitsubishi Heavy Industries [2] Group 3 - Foster emphasizes a strategy focused on free cash flow yield, seeking companies that can generate 12%-14% cash flow returns, which allows for less concern over external factors like AI advancements or political policies [3] - The fund is validating the potential for traditional "value traps" to transform into "growth soil" as Japan emerges from deflation [3]