Investment fund Evo Fund has significantly reduced its stake in Kubota Pharmaceutical Holdings (4596.T), according to regulatory filings. A large shareholding change report submitted to Japan’s Kanto Finance Bureau on July 14 shows the fund’s stake in the biotech company fell to 4.32%, a decline of 3.87 percentage points from the previous filing.
The reporting obligation was triggered on July 7. The fund cited multiple reasons for the filing: a decrease in its holding ratio exceeding 1%, a standalone shareholding ratio decline of over 1%, changes in the composition of its holdings, and material changes to key contractual arrangements.
Beyond Kubota Pharmaceutical Holdings, Evo Fund has recently reported reducing its stakes in several other Tokyo Stock Exchange-listed companies in rapid succession.
A change report filed on July 13 disclosed that the fund’s stake in Modalis Therapeutics (4883.T), a biotech venture listed on the TSE Growth Market, fell to 19.07%, down 1.12 percentage points from the prior filing. The reporting obligation date was July 6, with the filing triggered by a decline in the shareholding ratio exceeding 1%.
Also on July 13, Evo Fund submitted a change report for ASAHI EITO Holdings (5341.T), a housing equipment manufacturer listed on the TSE Standard Market. The fund’s stake in the company declined by 1.04 percentage points to 30.68%. The filing cited a decrease in both the overall and standalone shareholding ratios exceeding 1%. The reporting obligation date was July 6, the same day as the Modalis filing.
Evo Fund’s share sales across these three companies were all concentrated in the first week of July. While the specific reasons for the disposals are not disclosed in the filings, the simultaneous reduction of positions across multiple stocks in a short timeframe points to an active portfolio restructuring by the fund.
The large shareholding reports were filed in accordance with the “5% rule” under Japan’s Financial Instruments and Exchange Act. Investors who hold more than 5% of a listed company’s outstanding shares are classified as “large shareholders” and are generally required to file a change report within five business days when their holding ratio fluctuates by 1% or more.
Kubota Pharmaceutical Holdings is a biotech company focused on developing pharmaceuticals and medical devices primarily in the ophthalmology field, listed on the TSE Growth Market. Market participants may view Evo Fund’s reduced stake as a potential short-term supply-demand headwind for the stock. However, with the fund still holding over 4% of the company’s shares, attention will remain on whether additional selling follows.