Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>There are 49 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>Three new deals were discussed this week: Boyu's Offer for <a href="https://www.smartkarma.com/entities/jinke-smart-services-group-co" target="_blank" data-smartkarma-citation="entities:29214:1" rel="noopener">Jinke Smart Services (9666 HK)</a>;  Chinachems's Offer for <a href="https://www.smartkarma.com/entities/pine-care-group-ltd" target="_blank" data-smartkarma-citation="entities:28845:1" rel="noopener">Pine Care (1989 HK)</a>, &amp; Accenture Japan bid for <a href="https://www.smartkarma.com/entities/albert-inc" target="_blank" data-smartkarma-citation="entities:29668:1" rel="noopener">ALBERT (3906 JP)</a>.</li>
<li>Key updates took place for <a href="https://www.smartkarma.com/entities/hitachi-metals-ltd" target="_blank" data-smartkarma-citation="entities:8561:1" rel="noopener">Hitachi Metals (5486 JP)</a> and <a href="https://www.smartkarma.com/entities/maca-ltd" target="_blank" data-smartkarma-citation="entities:11390:1" rel="noopener">MACA Ltd (MLD AU)</a> .</li>
</ul>


There are 49 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals were discussed this week: Boyu's Offer for Jinke Smart Services (9666 HK);  Chinachems's Offer for Pine Care (1989 HK), &amp; Accenture Japan bid for ALBERT (3906 JP).
Key updates took place for Hitachi Metals (5486 JP) and MACA Ltd (MLD AU) .


(Mostly) Asia-Pac Weekly Risk Arb Wrap: Jinke Smart, Pine Care, MACA, Hitachi Metals

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<ul>
<li>We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology</li>
<li>Portfolio changes: Four stock remains, and 10 new join the fray</li>
<li>Since its inception, the portfolio has gained 80% versus MSCI Asia ex Japan's 63%</li>
</ul>


We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
Portfolio changes: Four stock remains, and 10 new join the fray
Since its inception, the portfolio has gained 80% versus MSCI Asia ex Japan's 63%


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Quantitative Analysis

<ul>
<li>We look at short interest across Hong Kong, Japan, Korea and Taiwan in April to identify stocks/sectors that have seen the largest changes in each market.</li>
<li>Korea and Taiwan are showing a clear divergence with short notional increasing as the market moves lower, indicative of new shorts being initiated.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-merchants-bank-co-ltd-3388a037-4214-4997-b45d-520518cfdb57" target="_blank" data-smartkarma-citation="entities:10987:1" rel="noopener">China Merchants Bank H (3968 HK)</a> has seen the largest short covering as the stock has tumbled in the last couple of weeks.</li>
</ul>


We look at short interest across Hong Kong, Japan, Korea and Taiwan in April to identify stocks/sectors that have seen the largest changes in each market.
Korea and Taiwan are showing a clear divergence with short notional increasing as the market moves lower, indicative of new shorts being initiated.

China Merchants Bank H (3968 HK) has seen the largest short covering as the stock has tumbled in the last couple of weeks.


Asia Short Interest: Large Moves in April

<ul>
<li>We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology</li>
<li>Portfolio changes: Five stock remains, and nine new join the fray</li>
<li>Since its inception, the portfolio has gained 75% versus MSCI Asia ex Japan's 64%</li>
</ul>


We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
Portfolio changes: Five stock remains, and nine new join the fray
Since its inception, the portfolio has gained 75% versus MSCI Asia ex Japan's 64%


Scanning through the Taiwan equity universe, we find three pairs that satisfy the following criteria:<ul>
<li>price ratio of the stocks is trading near the highs/lows</li>
<li>stock returns have relatively high correlations</li>
<li>valuations are supportive of selling the outperformer and buying the underperformer</li>
<li>short interest has been increasing on the outperformer and decreasing on the underperformer, indicative of positions being built up</li>
</ul>We categorise these pairs as trades that offer high risk/reward opportunities.There are other pairs that meet some, but not all, of the criteria and we place them in a lower risk/reward bucket.In this Insight, we highlight the pairs that could perform well and lay out our reasoning for the trade.

Scanning through the Taiwan equity universe, we find three pairs that satisfy the following criteria:
price ratio of the stocks is trading near the highs/lows
stock returns have relatively high correlations
valuations are supportive of selling the outperformer and buying the underperformer
short interest has been increasing on the outperformer and decreasing on the underperformer, indicative of positions being built up
We categorise these pairs as trades that offer high risk/reward opportunities.There are other pairs that meet some, but not all, of the criteria and we place them in a lower risk/reward bucket.In this Insight, we highlight the pairs that could perform well and lay out our reasoning for the trade.

Taiwan Long/Short Trades: Relative Performance, Shorts & Valuations

Taiwan

Far EasTone Telecommunications Co., Ltd. provides mobile communication and Internet access services.  The Company also sells cellular phones and related equipment.

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Far Eastone Telecomm (4904 TT)

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Jinke Smart, Pine Care, MACA, Hitachi Metals

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

The Stocks to Own in Asia – Vol. 37

We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology. Portfolio changes: Four stocks remain, and 10 stocks have...

A. Stotz Investment Research

Asia Short Interest: Large Moves in April

Short notional in Korea and Taiwan has been increasing as the market has been moving lower. Shorts on China Merchant Bank have been covered in...

Brian Freitas

The Stocks to Own in Asia – Vol. 36

We highlight 14 stocks in Asia that look interesting to us based on our FVMR Methodology. Portfolio changes: Five stock remains, and nine new join...

A. Stotz Investment Research

Taiwan Long/Short Trades: Relative Performance, Shorts & Valuations

We identify three pairs in Taiwan that are correlated, where the price ratio is trading near a high/low, valuations are supportive and short...

Brian Freitas

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52-week Range

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