Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

American Express Co / Equity Capital Markets

<ul><li>This is our first report on American Express, one of the world’s largest integrated payment companies.</li><li>The company continued the upward trend in Card Member spending, engagement, and retention in the fourth quarter.</li><li>We initiate coverage on the stock of the American Express Company with a 'Hold' rating.</li></ul>

This is our first report on American Express, one of the world’s largest integrated payment companies.The company continued the upward trend in Card Member spending, engagement, and retention in the fourth quarter.We initiate coverage on the stock of the American Express Company with a 'Hold' rating.

American Express Company: Initiation of Coverage – B2b Expansion & Other Drivers

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<p>Across our active Global fund universe, Value managers have seen $41bn in outflows over the past 5-years, compared to $65bn of inflows in to Growth funds.</p><p>With Value funds capturing some long awaited outperformance this year, we analyse the current holdings set up among the 63 active Value funds in our analysis.</p><p>Overweights in EMEA persist against underweights in Asia and the Americas.  Financials, Materials and Industrials are the key overweights versus underweights in Information Technology.</p><p>US Financials are the standout overweight, with <a href="https://www.smartkarma.com/entities/citigroup-inc" target="_blank" data-smartkarma-citation="entities:279:1" rel="noopener">Citigroup Inc (C US)</a> and <a href="https://www.smartkarma.com/entities/american-express-co" target="_blank" data-smartkarma-citation="entities:916:1" rel="noopener">American Express Co (AXP US)</a> the key positions.  The FAAMG group of stocks remain key underweight holdings, though <a href="https://www.smartkarma.com/entities/microsoft-corp" target="_blank" data-smartkarma-citation="entities:15273:1" rel="noopener">Microsoft Corp (MSFT US)</a> is the most widely held of the group. <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> is almost totally avoided and in Asia, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> , <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a> and <a href="https://www.smartkarma.com/entities/pinduoduo-inc" target="_blank" data-smartkarma-citation="entities:27250:1" rel="noopener">Pinduoduo (PDD US)</a> screen as 'Unloved' by global active Value managers.</p>

Across our active Global fund universe, Value managers have seen $41bn in outflows over the past 5-years, compared to $65bn of inflows in to Growth funds.With Value funds capturing some long awaited outperformance this year, we analyse the current holdings set up among the 63 active Value funds in our analysis.Overweights in EMEA persist against underweights in Asia and the Americas.  Financials, Materials and Industrials are the key overweights versus underweights in Information Technology.US Financials are the standout overweight, with Citigroup Inc (C US) and American Express Co (AXP US) the key positions.  The FAAMG group of stocks remain key underweight holdings, though Microsoft Corp (MSFT US) is the most widely held of the group. Tesla Motors (TSLA US) is almost totally avoided and in Asia, Meituan (3690 HK) , JD.com Inc (ADR) (JD US) and Pinduoduo (PDD US) screen as 'Unloved' by global active Value managers.

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

<p><strong><em>*RBA Speech – A Positive For Aussie BNPL: </em></strong>The Reserve Bank of Australia (RBA) indicated that the status-quo for the buy-now, pay-later (BNPL) sector is likely to continue into the foreseeable future – which is a significant positive for Tencent Holding’s (700.HK) [Tencent] Afterpay Touch (APT.AU) [Afterpay]. Specifically, BNPL operators can still prevent merchants from passing on transaction fees;</p><p><em><strong>*Strong Momentum As We Head Into Holiday Season: </strong></em>Just as we head into the holiday season, Tencent’s Afterpay provided some strong key metrics in its latest media release as discussed in “Tencent Holdings – Father Christmas” note dated December 3, 2020.  What a magnificent six months this has been for Afterpay, and the next six months look to be even more transformational with operations beginning in the European Union, launches of banking products, and potentially the launch of the business in Asia (likely under the tutelage of Tencent); and</p><p><em><strong>*More Magic Fairy Dust:</strong></em> Tencent continues to hit it out of the park with its Afterpay stake. In addition to a superb return on investment of 400% over the past six months since the stake announcement, this alliance with Australia’s premier financial technology Buy Now Pay Later (BNPL) company is paying dividends to Tencent in numerous other ways.</p>

*RBA Speech – A Positive For Aussie BNPL: The Reserve Bank of Australia (RBA) indicated that the status-quo for the buy-now, pay-later (BNPL) sector is likely to continue into the foreseeable future – which is a significant positive for Tencent Holding’s (700.HK) [Tencent] Afterpay Touch (APT.AU) [Afterpay]. Specifically, BNPL operators can still prevent merchants from passing on transaction fees;*Strong Momentum As We Head Into Holiday Season: Just as we head into the holiday season, Tencent’s Afterpay provided some strong key metrics in its latest media release as discussed in “Tencent Holdings – Father Christmas” note dated December 3, 2020.  What a magnificent six months this has been for Afterpay, and the next six months look to be even more transformational with operations beginning in the European Union, launches of banking products, and potentially the launch of the business in Asia (likely under the tutelage of Tencent); and*More Magic Fairy Dust: Tencent continues to hit it out of the park with its Afterpay stake. In addition to a superb return on investment of 400% over the past six months since the stake announcement, this alliance with Australia’s premier financial technology Buy Now Pay Later (BNPL) company is paying dividends to Tencent in numerous other ways.

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Thematic (Sector/Industry)

<p>There are vast differences in provisioning done for US banks during 1Q20. There are some banks that indicate a similar high level of provisions during 2Q20. Where this likely marks the worst in terms of unemployment, economic distress, and the reopening of economies, we wonder if credit costs can come way in during 2H20? Where the current crisis is self-inflicted from flipping a switch, wholly unlike drivers of the Asian Financial Crisis and the Global Financial Crisis, the profile of provisioning can be vastly different. This is further the case against a backdrop strong recovery metrics, unprecedented fiscal stimulus and historically low rates.</p>

There are vast differences in provisioning done for US banks during 1Q20. There are some banks that indicate a similar high level of provisions during 2Q20. Where this likely marks the worst in terms of unemployment, economic distress, and the reopening of economies, we wonder if credit costs can come way in during 2H20? Where the current crisis is self-inflicted from flipping a switch, wholly unlike drivers of the Asian Financial Crisis and the Global Financial Crisis, the profile of provisioning can be vastly different. This is further the case against a backdrop strong recovery metrics, unprecedented fiscal stimulus and historically low rates.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

SBI Cards & Payment Services / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/sbi-cards-payment" target="_blank" data-smartkarma-citation="entities:28662:1" rel="noopener">SBI Cards (SBICARDS IN)</a> is the second-largest credit card issuer in India, with an 18.0% market share of the Indian credit card market as measured by the number of credit cards outstanding as of 30 September 2019. SBI Cards will commence trading on Monday, 16 March. SBI Cards set its IPO price at Rs755 per share, which is the upper limit of the IPO price band.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/sbi-cards-and-payment-ipo-price-range-s-polarized-appeal" target="_blank" rel="noopener">our valuation note</a>, we stated that the signs point to a good post-IPO performance, and we are inclined to put on our "growth" hat and participate in the IPO. However, since then, the markets globally are in turmoil due to the covid-19 outbreak. While trying to predict market moves in the current environment is challenging, we think that SBI Cards will have a tepid debut (likely flat). On a longer-term basis, we think the valuation remains appealing to growth-oriented investors willing to look past the market turmoil.</p></div></div></div>

SBI Cards (SBICARDS IN) is the second-largest credit card issuer in India, with an 18.0% market share of the Indian credit card market as measured by the number of credit cards outstanding as of 30 September 2019. SBI Cards will commence trading on Monday, 16 March. SBI Cards set its IPO price at Rs755 per share, which is the upper limit of the IPO price band.In our valuation note, we stated that the signs point to a good post-IPO performance, and we are inclined to put on our "growth" hat and participate in the IPO. However, since then, the markets globally are in turmoil due to the covid-19 outbreak. While trying to predict market moves in the current environment is challenging, we think that SBI Cards will have a tepid debut (likely flat). On a longer-term basis, we think the valuation remains appealing to growth-oriented investors willing to look past the market turmoil.

SBI Cards and Payment IPO: Trading Debut In Unprecedented Times

United States

American Express Company is a global payment and travel company. The Company's principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world.

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American Express Co (AXP US)

American Express Company: Initiation of Coverage – B2b Expansion & Other Drivers

This is our first report on American Express, one of the world’s largest integrated payment companies. The company continued the upward trend in...

Baptista Research

Where Are Global Value Funds Positioned?

With Value funds capturing some long awaited outperformance this year, we analyse the current holdings set up among the active Global Value funds...

Steven Holden

Tencent Holdings – After The Speech

TENCENT HOLDINGS: Reserve Bank of Australia indicated that the status-quo for BNPL is likely to continue – which is a significant positive for...

Thomas J. Monaco

US Banks – Provisions To Halve?

There are vast differences in provisioning done for US banks during 1Q20. There are some banks that indicate a similar high level of provisions...

Daniel Tabbush

SBI Cards and Payment IPO: Trading Debut In Unprecedented Times

SBI Cards (SBICARDS IN) is the second-largest credit card issuer in India, with an 18.0% market share of the Indian credit card market as measured...

Arun George

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