Alpha-Centric ESG Research

Kyle Rudden

Here it comes, the David-and-Goliath metaphor. Cliché is an understatement, but who cares – it is a most fitting allegory for the epic proxy battle between a diminutive activist investor you've never heard of and a "Big Oil" Behemoth that you know all too well... <a href="https://www.smartkarma.com/entities/exxon-mobil-corp" target="_blank" data-smartkarma-citation="entities:811:1" rel="noopener">Exxon Mobil (XOM US)</a>.Guess who won?Well, that depends on perspective. The activist hedge fund (Engine No. 1) gained three Board seats so one could certainly say that Engine won. As did the shareholders that backed Engine in its proxy (BlackRock, Vanguard, State Street, CalPERS, CalSTRS). But the biggest winner of all?Planet Earth.Engine's improbable win – in conjunction with similar (albeit less spectacular) shareholder actions at other supermajors – appears to signify a seismic shift in how Big Oil's shareholders view climate change, and could portend real change (e.g., accelerated decarbonisation and better reporting).

Here it comes, the David-and-Goliath metaphor. Cliché is an understatement, but who cares – it is a most fitting allegory for the epic proxy battle between a diminutive activist investor you've never heard of and a "Big Oil" Behemoth that you know all too well... Exxon Mobil (XOM US).Guess who won?Well, that depends on perspective. The activist hedge fund (Engine No. 1) gained three Board seats so one could certainly say that Engine won. As did the shareholders that backed Engine in its proxy (BlackRock, Vanguard, State Street, CalPERS, CalSTRS). But the biggest winner of all?Planet Earth.Engine's improbable win – in conjunction with similar (albeit less spectacular) shareholder actions at other supermajors – appears to signify a seismic shift in how Big Oil's shareholders view climate change, and could portend real change (e.g., accelerated decarbonisation and better reporting).

Engine Versus Exxon: Activist Hedge Fund's Proxy Fight Win Reverberates Through "Big Oil" Boardrooms

Latest News from the World’s Leading Innovators

Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Thematic (Sector/Industry)

Headline Developments China is looking to continue its rout on crypto, pushing for the suspension of some crypto mining operations late last week.  Chinese Vice Premier Liu He told a group of officials that the Government would “clamp down on bitcoin mining and trading activity” to achieve financial stability.

Headline Developments China is looking to continue its rout on crypto, pushing for the suspension of some crypto mining operations late last week.  Chinese Vice Premier Liu He told a group of officials that the Government would “clamp down on bitcoin mining and trading activity” to achieve financial stability.

Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cross-Asset Strategist & Quantitative Analyst

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Quantitative Analysis

The global economy is poised for a bull market in commodity prices. Within the commodity-producing sectors, there is a substantial value opportunity for investors in energy stocks owing to the reluctance of management to invest in new supply should oil prices rise.The cyclical rebound should translate into higher oil prices over the next 12–24 months. In the past three years, the ratio of energy stock prices to crude oil has been relatively flat. Energy stocks should rise in line with oil prices, which creates considerable profit potential under a bullish oil scenario.

The global economy is poised for a bull market in commodity prices. Within the commodity-producing sectors, there is a substantial value opportunity for investors in energy stocks owing to the reluctance of management to invest in new supply should oil prices rise.The cyclical rebound should translate into higher oil prices over the next 12–24 months. In the past three years, the ratio of energy stock prices to crude oil has been relatively flat. Energy stocks should rise in line with oil prices, which creates considerable profit potential under a bullish oil scenario.

Value Opportunities in the New Commodity Supercycle

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Indomobil Sukses Internasional / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/indomobil-sukses-internasional-tbk-pt" target="_blank" data-smartkarma-citation="entities:11738:1" rel="noopener">Indomobil Sukses Internasional (IMAS IJ)</a> has come back onto the investment radar as its growth strategy starts to take shape (with an obvious delay from COVID-19), with automotive, including trucks, heavy equipment, and autos, now making up more than 50% of sales. 
The company is the sole distributor for HINO Trucks, the leading large-size truck brand, with more than 50% market share in Indonesia and has now 100% of the Volvo distribution for the country. 
The company has also started to revive its Nissan auto business, increasing its stake in the distributor to 75%, giving <a href="https://www.smartkarma.com/entities/indomobil-sukses-internasional-tbk-pt" target="_blank" data-smartkarma-citation="entities:11738:1" rel="noopener">Indomobil Sukses Internasional (IMAS IJ)</a> a higher vested interest in the brand's success. It has also expanded the number of Suzuki dealers and is now the sole distributor for KIA in Indonesia. 
Indombil is one of Indonesia's largest multi finance companies, with a greater exposure to commercial vehicles than its peers, which makes it relatively defensive. Indorent is Indonesia's No.3 car leasing player and has been relatively defensive through the pandemic period. 
<a href="https://www.smartkarma.com/entities/indomobil-sukses-internasional-tbk-pt" target="_blank" data-smartkarma-citation="entities:11738:1" rel="noopener">Indomobil Sukses Internasional (IMAS IJ)</a>  has also significantly grown in its trucking &amp; logistics business under a JV with <a href="https://www.smartkarma.com/entities/seino-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:13248:1" rel="noopener">Seino Holdings (9076 JP)</a>, which now has more than 5,484 trucks in its fleet, covering a whole host of FMCG clients outside <a href="https://www.smartkarma.com/entities/indofood-sukses-makmur-tbk-p" target="_blank" data-smartkarma-citation="entities:1053:1" rel="noopener">Indofood Sukses Makmur Tbk P (INDF IJ).</a>
<a href="https://www.smartkarma.com/entities/indomobil-sukses-internasional-tbk-pt" target="_blank" data-smartkarma-citation="entities:11738:1" rel="noopener">Indomobil Sukses Internasional (IMAS IJ)</a> is also pushing ahead with its micro-petrol stations across the country with Exxon Mobil and Federal Oil Lubricants. It has 500 stations already open with a target of 700 micro-stations by year-end. These micro-stations are aimed at servicing motorcycle drivers. 
<div class="content-highlight">
<a href="https://www.smartkarma.com/entities/indomobil-sukses-internasional-tbk-pt" target="_blank" data-smartkarma-citation="entities:11738:1" rel="noopener">Indomobil Sukses Internasional (IMAS IJ)</a> is an interesting restructuring story backed by the Salim Group, which has seen the monetization of its significant investments into the trucking space delayed by COVID-19. Trading on 0.25x FY2020 PBV, with the prospect of a sharp earnings recovery in 2020, driven by both its automotive and trucking exposure. 
</div>

Indomobil Sukses Internasional (IMAS IJ) has come back onto the investment radar as its growth strategy starts to take shape (with an obvious delay from COVID-19), with automotive, including trucks, heavy equipment, and autos, now making up more than 50% of sales. 
The company is the sole distributor for HINO Trucks, the leading large-size truck brand, with more than 50% market share in Indonesia and has now 100% of the Volvo distribution for the country. 
The company has also started to revive its Nissan auto business, increasing its stake in the distributor to 75%, giving Indomobil Sukses Internasional (IMAS IJ) a higher vested interest in the brand's success. It has also expanded the number of Suzuki dealers and is now the sole distributor for KIA in Indonesia. 
Indombil is one of Indonesia's largest multi finance companies, with a greater exposure to commercial vehicles than its peers, which makes it relatively defensive. Indorent is Indonesia's No.3 car leasing player and has been relatively defensive through the pandemic period. 
Indomobil Sukses Internasional (IMAS IJ)  has also significantly grown in its trucking &amp; logistics business under a JV with Seino Holdings (9076 JP), which now has more than 5,484 trucks in its fleet, covering a whole host of FMCG clients outside Indofood Sukses Makmur Tbk P (INDF IJ).
Indomobil Sukses Internasional (IMAS IJ) is also pushing ahead with its micro-petrol stations across the country with Exxon Mobil and Federal Oil Lubricants. It has 500 stations already open with a target of 700 micro-stations by year-end. These micro-stations are aimed at servicing motorcycle drivers. 

Indomobil Sukses Internasional (IMAS IJ) is an interesting restructuring story backed by the Salim Group, which has seen the monetization of its significant investments into the trucking space delayed by COVID-19. Trading on 0.25x FY2020 PBV, with the prospect of a sharp earnings recovery in 2020, driven by both its automotive and trucking exposure. 


Indomobil Sukses Internasional (IMAS IJ) Emerging Transport Monolith?

In <a href="https://www.smartkarma.com/insights/u-s-elections-and-esg-impacts-on-people-planet-and-profit" target="_blank" data-smartkarma-citation="insights:42655" rel="noopener">U.S. Elections and ESG: Impacts on People, Planet… and Profit</a>, I discussed major universally-relevant implications of the 2020 U.S. elections from an ESG and Triple Bottom Line perspective, and using the three TBL pillars for structure: 1) Environmental, 2) Social and Governance, and 3) Economic. That report was a deep dive, but nonetheless largely stayed on the macro level.
This Insight is one of several regionally-focused reports analysing the U.S. elections – candidates, their policy positions, and implications of evolving election outcome scenarios – on a more micro plane. Specifically, implications for regional markets, sectors, and stocks based on the policies of the Democrat and Republican tickets in conjunction with Congressional election result scenarios.
Consider this the inaugural report for North America-focused coverage of the 2020 elections. It will be updated, and more importantly built upon, over the next two months (all elections are held on 3 November) as significant events unfold. This initial report lays the basic foundation for that future coverage. In particular, it addresses the following topics (which also approximate an outline):
<ul>
<li>Overview of major policy proposals or plans for U.S. and Canadian markets, sectors, and stocks</li>
<li>U.S. and Canadian sectors/stocks that benefit/lose from Biden climate and infrastructure plans</li>
<li>U.S. and Canadian sectors/stocks that benefit/lose from Biden corporate tax policies and hikes</li>
<li>High-level summary of the most consequential points addressed in the aforementioned Insight</li>
</ul>

In U.S. Elections and ESG: Impacts on People, Planet… and Profit, I discussed major universally-relevant implications of the 2020 U.S. elections from an ESG and Triple Bottom Line perspective, and using the three TBL pillars for structure: 1) Environmental, 2) Social and Governance, and 3) Economic. That report was a deep dive, but nonetheless largely stayed on the macro level.
This Insight is one of several regionally-focused reports analysing the U.S. elections – candidates, their policy positions, and implications of evolving election outcome scenarios – on a more micro plane. Specifically, implications for regional markets, sectors, and stocks based on the policies of the Democrat and Republican tickets in conjunction with Congressional election result scenarios.
Consider this the inaugural report for North America-focused coverage of the 2020 elections. It will be updated, and more importantly built upon, over the next two months (all elections are held on 3 November) as significant events unfold. This initial report lays the basic foundation for that future coverage. In particular, it addresses the following topics (which also approximate an outline):

Overview of major policy proposals or plans for U.S. and Canadian markets, sectors, and stocks
U.S. and Canadian sectors/stocks that benefit/lose from Biden climate and infrastructure plans
U.S. and Canadian sectors/stocks that benefit/lose from Biden corporate tax policies and hikes
High-level summary of the most consequential points addressed in the aforementioned Insight


U.S. Elections and ESG: Impacts on People, Planet… and Profit (North America)

United States

Exxon Mobil Corporation operates petroleum and petrochemicals businesses on a worldwide basis.  The Company's operations include exploration and production of oil and gas, electric power generation, and coal and minerals operations. Exxon Mobil also manufactures and markets fuels, lubricants, and chemicals.

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Exxon Mobil (XOM US)

Engine Versus Exxon: Activist Hedge Fund's Proxy Fight Win Reverberates Through "Big Oil" Boardrooms

May 26, 2021. Black Wednesday. A day that changed Big Oil forever. From Exxon's proxy fight loss to an activist fund you've never heard of, to...

Kyle Rudden

Weekly Innovation Review #33

Headline Developments China is looking to continue its rout on crypto, pushing for the suspension of some crypto mining operations late last week. ...

Granite Bay Capital

Value Opportunities in the New Commodity Supercycle

The global economy is poised for a bull market in commodity prices. There is a value opportunity for investors in energy stocks owing to the likely...

Cam Hui

Indomobil Sukses Internasional (IMAS IJ) Emerging Transport Monolith?

Indomobil Sukses Internasional (IMAS IJ) is an emerging transport monolith with the potential to be an interesting alternative to Astra International.

Angus Mackintosh

U.S. Elections and ESG: Impacts on People, Planet… and Profit (North America)

In U.S. Elections and ESG: Impacts on People, Planet… and Profit, I discussed major universally-relevant implications of the 2020 U.S. elections...

Kyle Rudden

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