Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

TSE Mothers-listed <a href="https://www.smartkarma.com/entities/frontier-management-inc" target="_blank" data-smartkarma-citation="entities:29135:1" rel="noopener">Frontier Management Inc (7038 JP)</a> announced (<a href="https://www.frontier-mgmt.com/5581/" target="_blank" rel="noopener">J-only</a>) after market close yesterday it had received approval to move to TSE1 as of 7th September 2020. 
TSE1 reassignment triggers inclusion into the TOPIX Index and I expect the Inclusion Event to be at the close of trading 29th October 2020. 
Founded in 2007, Frontier Management is a Tokyo-headquartered management consultancy company that provides a range of business solutions in the areas of M&amp;A advisory, management execution support, business revitalization support, business succession advisory, post M&amp;A advisory, cross-border M&amp;A support, and overseas expansion support.
In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event.

TSE Mothers-listed Frontier Management Inc (7038 JP) announced (J-only) after market close yesterday it had received approval to move to TSE1 as of 7th September 2020. 
TSE1 reassignment triggers inclusion into the TOPIX Index and I expect the Inclusion Event to be at the close of trading 29th October 2020. 
Founded in 2007, Frontier Management is a Tokyo-headquartered management consultancy company that provides a range of business solutions in the areas of M&amp;A advisory, management execution support, business revitalization support, business succession advisory, post M&amp;A advisory, cross-border M&amp;A support, and overseas expansion support.
In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event.  

TOPIX Inclusion (7038 JP): Frontier Management Inc

Quantitative Analysis

About 18 months ago, <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> set up an interesting framework to look at TOPIX Inclusions over time, showing how different size categories performed in the run-up to inclusion then after inclusion. That was in <a href="https://www.smartkarma.com/insights/historical-topix-inclusions-how-do-they-do-around-inclusion-date" target="_blank" data-smartkarma-citation="insights:26751" rel="noopener">Historical TOPIX Inclusions:  How Do They Do Around Inclusion Date?</a> I published <a href="https://www.smartkarma.com/insights/historical-topix-inclusions-what-flavor-performs-best" target="_blank" data-smartkarma-citation="insights:39523" rel="noopener">Historical TOPIX Inclusions:  What Flavor Performs Best?</a> last month to enhance and update the analysis to include combination inclusion event size and impact size as parameters by which to understand reward: risk characteristics. This month I published <a href="https://www.smartkarma.com/insights/topix-inclusion-pre-events-recent-tachiaigai-bunbai-round-up" target="_blank" data-smartkarma-citation="insights:40509" rel="noopener">TOPIX Inclusion Pre-Events: Recent "Tachiaigai Bunbai" Round-Up</a> which discussesThere are currently 10 live pre-events, 5 live inclusion events, and a half dozen just-post-inclusion names from May 2020.This insight provides a recap of what has happened this month in each category, and the charts can show you where each category of live event situates itself on its historical pattern.The three TOPIX inclusions for May in the non-AVOID category outperformed TOPIX by an average of just over 50% from announcement to inclusion. We wrote on all three, being <a href="https://www.smartkarma.com/insights/topix-inclusion-retail-partners-8167-jp" target="_blank" rel="noopener">especially bullish on the one which went up 80%</a>. This category of event trade can offer significantly interesting trading opportunities. We encourage investors to track them.

About 18 months ago, Travis Lundy set up an interesting framework to look at TOPIX Inclusions over time, showing how different size categories performed in the run-up to inclusion then after inclusion. That was in Historical TOPIX Inclusions:  How Do They Do Around Inclusion Date? I published Historical TOPIX Inclusions:  What Flavor Performs Best? last month to enhance and update the analysis to include combination inclusion event size and impact size as parameters by which to understand reward: risk characteristics. This month I published TOPIX Inclusion Pre-Events: Recent "Tachiaigai Bunbai" Round-Up which discussesThere are currently 10 live pre-events, 5 live inclusion events, and a half dozen just-post-inclusion names from May 2020.This insight provides a recap of what has happened this month in each category, and the charts can show you where each category of live event situates itself on its historical pattern.The three TOPIX inclusions for May in the non-AVOID category outperformed TOPIX by an average of just over 50% from announcement to inclusion. We wrote on all three, being especially bullish on the one which went up 80%. This category of event trade can offer significantly interesting trading opportunities. We encourage investors to track them.

Japan

Frontier Management Inc. offers business consulting services. The Company provides management consulting, mergers and acquisitions advisory, management executive support, and business regeneration support services. Frontier Management offers services in Japan.

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Frontier Management Inc (7038 JP)

TOPIX Inclusion (7038 JP): Frontier Management Inc

Evaluation of the upside potential of Frontier Management Inc (7038 JP)'s upcoming TOPIX Inclusion Event.

Janaghan Jeyakumar, CFA

TOPIX Inclusion Trade Summary: June 2020

About 18 months ago, Travis Lundy set up an interesting framework to look at TOPIX Inclusions over time, showing how different size categories...

Janaghan Jeyakumar, CFA

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