Renowned contrarian value-manager Peter Cundill says heÕs focused on Japan these days. He is introducing his first U.S. mutual fund, the Ivy Cundill Global Value Fund.

“I’m agnostic on where the markets will go,” said Cundill. “I don’t have a view. Our task is to find under-valued global securities that are trading well below their intrinsic value. In other words, we follow the strict Benjamin Graham approach to investing.”

Currently, the largest percentage of his fund is invested in Japanese stocks (46%) because that is where Cundill sees the most value. This is contrary to EAFE, which is weighted at 24% in Japan. In addition, his allocation to the U.S. markets is virtually non-existent, at less than 2%, while most managers allocate at least 50% to the U.S. markets.

“Whether we’re right or wrong, we’re focused on Japan, not because we have any great belief in Japan, but because that’s where we have found securities at the best value,” said Cundill. “I think the key is that we’re absolute return investors, not relative return investors.”

Cundill manages over $1.8 billion for institutional clients in Canada and is now running a U.S. mutual fund. The Ivy Cundill Global Value Fund was ranked eighth out of 261 global funds tracked by Lipper for the last 12 months ending August 31. The fund also posted a one-year return of 1.34% in contrast to the MSCI Global Fund Index, which was at -25.39% for the same time period.