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

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/nio-inc" target="_blank" data-smartkarma-citation="entities:27399:1" rel="noopener">NIO Inc (NIO US)</a> are among the largest underweight holdings among active EM investors</li>
<li>Combined with this, both stocks are underowned compared to peers.  Relatively large index weights haven't been enough to lure active managers to invest in the numbers we might expect.  </li>
<li>Among existing holders, conviction levels are low, with only a small number of managers holding either stock as a leading weight.</li>
</ul>



Meituan (3690 HK) and NIO Inc (NIO US) are among the largest underweight holdings among active EM investors
Combined with this, both stocks are underowned compared to peers.  Relatively large index weights haven't been enough to lure active managers to invest in the numbers we might expect.  
Among existing holders, conviction levels are low, with only a small number of managers holding either stock as a leading weight.


Meituan Dianping & Nio Inc:  The Definitive EM Underweights

Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

<ul>
<li>The State Administration for Market Regulation (SAMR) published proposal to prevent large internet platforms from abusing market dominance and harming people’s interests in cities, counties, and grassroots areas.</li>
<li>The proposal urged to monitor cutthroat competition in community group purchases via stringent enforcement and supervision</li>
<li>The proposal formulate plans to restrict disordered capital expansion that can lead to monopolies.</li>
</ul>


The State Administration for Market Regulation (SAMR) published proposal to prevent large internet platforms from abusing market dominance and harming people’s interests in cities, counties, and grassroots areas.
The proposal urged to monitor cutthroat competition in community group purchases via stringent enforcement and supervision
The proposal formulate plans to restrict disordered capital expansion that can lead to monopolies.


China Addresses Issues with Community Group Purchase Platforms

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<ul>
<li>Meituan is a sell at the top of the rising wedge ahead of a key support break. 300 and 320 sell points with tactical pivot supports stand out.</li>
<li>Buy volumes have been deteriorating on the way up, creating a false sense of security for the bulls while showing underling weakness/risk as the rising wedge matures.</li>
<li>RSI wedge support is the lead pivot to monitor. Rising wedge's form when upside momentum and buy volumes wilt as the long becomes crowded.</li>
</ul>


Meituan is a sell at the top of the rising wedge ahead of a key support break. 300 and 320 sell points with tactical pivot supports stand out.
Buy volumes have been deteriorating on the way up, creating a false sense of security for the bulls while showing underling weakness/risk as the rising wedge matures.
RSI wedge support is the lead pivot to monitor. Rising wedge's form when upside momentum and buy volumes wilt as the long becomes crowded.


Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Numerous media accounts have mentioned that Didi could relaunch its ride-hailing app in China by the end of 2021.</li>
<li>In terms of share price trend, it is starting to form an attractive double bottom pattern, with increasing prices on rising volume. </li>
<li>Our base case valuation of DiDi Global is a target price of $12 per share, which represents a 35% upside from current levels.</li>
</ul>


Numerous media accounts have mentioned that Didi could relaunch its ride-hailing app in China by the end of 2021.
In terms of share price trend, it is starting to form an attractive double bottom pattern, with increasing prices on rising volume. 
Our base case valuation of DiDi Global is a target price of $12 per share, which represents a 35% upside from current levels.


Didi Global - Higher Probability of Relaunching Ride Hailing App in China by the End of 2021

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

<ul>
<li>
Results Weaker: Tencent Holdings’ (700.HK) [Tencent] 3Q21 GAAP net income declined another CNY 5.2 bn (6.7%) on a linked quarter basis. </li>
<li>
Challenges: Results were challenged by a cost of revenue increase; operating expense increase; increased losses in associates; higher impairment charges; a higher tax rate and weaker online advertising; and    </li>
<li>
Elephant In Room: China's crackdown on capital markets has rapidly expanded under the broad narrative of "financial stability". Tencent is following Alibaba in its formation of a financial holding company. </li>
</ul>



Results Weaker: Tencent Holdings’ (700.HK) [Tencent] 3Q21 GAAP net income declined another CNY 5.2 bn (6.7%) on a linked quarter basis. 

Challenges: Results were challenged by a cost of revenue increase; operating expense increase; increased losses in associates; higher impairment charges; a higher tax rate and weaker online advertising; and    

Elephant In Room: China's crackdown on capital markets has rapidly expanded under the broad narrative of "financial stability". Tencent is following Alibaba in its formation of a financial holding company. 


China

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

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Meituan (3690 HK)

Meituan Dianping & Nio Inc: The Definitive EM Underweights

Large benchmark weights have not been enough to lure active managers to invest in either Nio or Meituan in the numbers we would expect. They stand...

Steven Holden

China Addresses Issues with Community Group Purchase Platforms

We think the statement shows the SAMR is investigating the community group purchase market, which could mean there will soon be standardised rules...

Li Tang

Meituan Short Zone

Meituan is a sell at the top of the rising wedge ahead of a key support break. 300 and 320 sell points with tactical pivot supports stand out.

Thomas Schroeder

Didi Global - Higher Probability of Relaunching Ride Hailing App in China by the End of 2021

There have been numerous media accounts in the past two days that have mentioned that DiDi Global (DIDI US) is likely to relaunch its ride-hailing...

Douglas Kim

Tencent Holdings – Increasing Risk

TENCENT: Tencent's 3Q21 GAAP net income declined 6.7% QOQ, and were challenged by increases in cost of revenue, operating expenses, losses in...

Thomas J. Monaco

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