Itochu Corporation

ITOCY position long Lyrical Asset Management

Thesis

Itochu is fundamentally different from other Japanese trading companies, showing consistent earnings growth of 10% annually for 15 years and generating low-teens returns on equity. Their diverse portfolio includes strong brands and capital-light franchise businesses, making them a compelling long-term investment.

Did it work?

worked confidence: high

The stock pitch for Itochu has significantly outperformed expectations, with a price increase of 107.5% over 86 months, which aligns well with the thesis of consistent earnings growth and strong returns on equity. The long-term investment thesis appears validated by the substantial price appreciation, indicating that the company's fundamentals have indeed supported the bullish outlook.

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