Japanese hedge fund managers call for government intervention

Managers of Japan long/short hedge funds have said government intervention could create investment opportunities. Small-cap stocks have outperformed in recent months, according to Rod Birkett, manager of Thames River Capital's Edo long/short Japan fund, due to an imbalance in supply and demand for the larger stocks. In 1999-2000, the market was dragged up by a few stocks and now is being dragged down by just as few, according to Birkett. 'There is clearly a significant opportunity to buy some of the larger names and short the smaller-cap stocks,' he said. Michelle Sanders, co-mana...