Warburg Pincus Feeling Heat from Japan's Internet Burnout
Firm's Japan funds suffer as their top stock picks crash.
Showing the flip side of their risky strategies, Warburg Pincus' two Japan funds have recently suffered steep losses as Japanese Internet stocks have collapsed.
That's quite a contrast to 1999, when Warburg Pincus Japan Growth (WPJGX) and Warburg Pincus Japan Small Company (WPJPX) posted stunning gains of 266% and 329%, respectively. The funds benefited greatly from their devotion to Japan's three major Internet plays: Softbank (a part owner of Morningstar), Hikari Tsushin, and Sony (SNE). With Internet-crazed investors sending the prices of those stocks higher than Mount Fuji, the funds' returns soared.
Gregg Wolper does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.