Only WisdomTree has Enough Money to Burn

Submitted by Stockmaster3 on Wed, 01/23/2013 - 05:01

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WisdomTree Investments stock has jumped 35% in the new year.

Japanese stocks have been all the rage this past few weeks and the big winner is the WisdomTree Japan Hedged Equity Fund (DXJ). More so the company that runs the ETF, WisdomTree Investments, Inc. (WETF) has watched its stock price jump more than 1/3 in 2013.

We talked up Japanese ETFs for 2013 for Big ROI and declared the winner to be the WisdomTree Japan Hedged Equity Fund (DXJ) when matched against the iShares MSCI Japan Index Fund (EWJ), Precidian MAXIS Nikkei 225 Index ETF (NKY), and SPDR Russell/Nomura PRIME Japan ETF (JPP). A little more than a week ago we reported WisdomTree's DXJ had attracted net inflows of more than $673.5 million in new investor dollars—which included $236.7 million so far in 2013. Today WisdomTree reported the DXJ surpassed $2 billion in assets. That's right, the DXJ has more than doubled its assets in under a month.

Since E.F. Hutton isn't around these days, we turn to 'The Fly' at iBankcoin.com:

Wisdom Tree has been an innovator in managed ETFs. Their AUM are at record highs of $20 billion, thanks in large part of DXJ–which now has over $2 billion committed to it by investors. A staggering $576 million of inflows was reported the week ending 1/17, thanks to the popularity of the long Japan/short Yen thesis.

Providing this trend in Japan continues, WETF is going to be a major beneficiary, without having the risk of earnings shortfalls by Japanese corporations who are attempting turn arounds.

Read his full article here titled A Better Way to Play Japan, he makes an intriguing thesis to go long WETF. Wisdomtree Investments Inc (WETF) shares have traded between $5.37 and $8.95 over the past 12 months. WETF shares closed at $8.31 today, up 4.33% or 36 cents.

Bottom line: Wisdomtree Investments Inc (WETF) shares have been roaring since the start of the year. How much higher it could climb is up to speculation. A voice of reason has spoke regarding the company, who will listen?