U.S. hedge fund Elliott has built a stake in Sumitomo, one of the Japanese trading companies Warren Buffett has invested in, according to a person familiar with the situation. Shares of Sumitomo jumped 10% this week after Bloomberg first reported the news.

Elliott isn't the only one. Berkshire Hathaway, Buffett's investment flagship, owns an 8.3% stake in the company, after raising its stake last year. He has made a killing since he first invested in five Japanese trading companies in 2020. Sumitomo's share price, for example, has more than tripled during the period.

Cheap valuations were probably what drew Buffett in. Even after the rally, Sumitomo trades at just 1.2 times book value and 10 times expected earnings, with a 3% dividend yield, according to FactSet.

wsj.com - Elliott and warren buffett are now both bullish on japan

bloomberg.com - Elliott said to build large stake in buffett favored sumitomo