Steve Kuhn, chief of fixed-income trading at $15.6 billion hedge fund firm Pine River Capital Management LP, recommends buying Japanese stocks.

Kuhn said the stocks are still cheap relative to bonds, during a presentation at the Invest for Kids conference in Chicago Thursday. He said corporate governance in Japan is “bad but definitely getting better.”

Japanese Prime Minister Shinzo Abe made improving company governance a key pillar in the nation’s revised growth strategies in June. The Bank of Japan also unexpectedly expanded monetary stimulus last month, sending global stock markets higher.

Kuhn said Pine River, based in Minnetonka, Minnesota, has invested in rising Japanese equities that will attract “disproportionate” inflows from the Government Pension Investment Fund and other investors.

Kuhn said he traded Japanese convertible bonds at Chicago hedge fund firm Citadel LLC.