As usual, the death grip of the Children's Investment Fund Management cannot be denied, defied (or belied by its wholly innocent name). If you’re a company lucky enough to be protected by your local government against the $10 billion hedge fund’s ambitious overtures, don’t be so quick to breathe easy: TCI has other recourse for getting its way.

TCI, the U.K. hedge fund whose bid to increase its stake in J-Power was blocked by Japan's government, bought shares in Mizuho Financial Group Inc. and Kajima Corp. to get major shareholders to prod the utility to boost returns.

The fund, officially known as the Children's Investment Fund Management (UK) LLP, bought stakes of less than 5 percent in Mizuho, Japan's second-biggest bank, and Kajima, the nation's biggest general contractor, in the past couple of months, John Ho, Hong Kong-based head of TCI's Asia division, said in an interview in Tokyo yesterday.

The London-based fund, with $10 billion of assets, invested in the companies because they are common shareholders of Electric Power Development Co., as J-Power is officially called, and will seek to hold them accountable on how they vote, Ho said. TCI is J-Power's biggest shareholder, with a 9.9 percent stake.

"We hold every company accountable for their investment returns and if J-Power does well, they will do well," said Ho. "We will seek to have them invest and vote on the investment holdings appropriately to maximize the value of their investment."

TCI is drawing attention to the fact that J-Power, Japan's biggest power wholesaler, has increased cross-shareholdings with business partners over the past couple of years, a practice it says diverts returns that should go to investors.

TCI is asking for voting proxies on seven agenda items, including a limit on cross-shareholdings and the re-appointment of Yoshihiko Nakagaki as president, at J-Power's June 26 annual general meeting.

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