The T. Rowe Price Japan Fund (Trades, Portfolio) has recently submitted its N-PORT filing for the first quarter of 2025, unveiling significant insights into its investment strategy during this critical period. Renowned for its focused investment approach in Japanese companies, the fund is committed to identifying firms that not only achieve but also sustain above-average, long-term earnings growth. With a growth-oriented investment style, the T. Rowe Price Japan Fund relies on a dedicated global team of analysts who engage in comprehensive fundamental research, an approach that underscores the fund's commitment to uncovering high-potential investment opportunities.

As part of its investment strategy, the fund typically allocates at least 80% of its net assets across a diverse array of Japanese companies. It particularly emphasizes firms possessing strong market positions, appealing business niches, and experienced management teams, which are crucial elements for driving long-term growth.

Significant Exit: Hitachi Ltd

Among the noteworthy developments in the fund's recent activity is its complete exit from Hitachi Ltd (TSE:6501). This decision was particularly impactful, resulting in a -4.39% effect on the overall portfolio. The exit involved the sale of all 462,800 shares that the fund held, highlighting a strategic shift in focus.

Summary of New Buys

In the first quarter of 2025, the T. Rowe Price Japan Fund expanded its portfolio by adding a total of seven new stocks. Leading this list was a notable purchase of Yokogawa Electric Corp (TSE:6841), where the fund acquired 134,600 shares. This investment now accounts for 1.01% of the portfolio, holding a total value of 2,603,970 million yen. Following closely, the fund increased its stake in Unicharm Corp (TSE:8113) by 325,300 shares, representing roughly 1% of the portfolio with a total value of 2,587,560 million yen.

Additionally, the fund made a significant addition to Oji Holdings Corp (TSE:3861), acquiring 403,400 shares, which now constitutes 0.65% of the portfolio, valued at 1,691,940 million yen. These strategic buys reflect the fund's continuous commitment to diversifying its investments within the Japanese market.

Key Position Increases

Furthermore, T. Rowe Price Japan Fund also augmented its stakes in ten existing stocks during the quarter. The most substantial increase occurred with Chugai Pharmaceutical Co Ltd (TSE:4519), where the fund added 85,900 shares, boosting its total holdings to 116,000 shares. This adjustment represents an impressive 285.38% increase in share count and has a notable impact of 1.51% on the current portfolio, valued at 5,274,070 million yen.

Another significant increase was seen in Shin-Etsu Chemical Co Ltd (TSE:4063), where the fund increased its holdings by 128,700 shares, bringing the total to 292,800. This represents a 78.43% increase in share count, with the total value of this stake reaching 8,294,110 million yen, further showcasing the fund's proactive stance in capitalizing on growth opportunities.

Summary of Sold Out Positions

In addition to its new acquisitions and increased positions, T. Rowe Price Japan Fund completely exited five holdings during the first quarter. The most significant of these sales was the total liquidation of Hamamatsu Photonics KK (TSE:6965), where the fund sold all 174,700 shares, resulting in a -0.74% impact on the portfolio. These strategic decisions reflect the funds dynamic approach to portfolio management as it adapts to market conditions and seeks optimal investment performance.