Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Thematic (Sector/Industry)

<ul>
<li>This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.</li>
<li>Macro data points: Higher South Korean interest rates and inflation expectations.</li>
<li>Companies mentioned: <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/baidu-inc-a55ca720-5968-48f0-8194-ac94390d065c" target="_blank" data-smartkarma-citation="entities:32212:1" rel="noopener">Baidu (9888 HK)</a>, <a href="https://www.smartkarma.com/entities/netease" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a>, <a href="https://www.smartkarma.com/entities/cloud-village-inc" target="_blank" data-smartkarma-citation="entities:33412:1" rel="noopener">Cloud Village (CLV HK)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple Inc (AAPL US)</a>
</li>
</ul>


This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
Macro data points: Higher South Korean interest rates and inflation expectations.
Companies mentioned: Samsung Electronics (005930 KS), Alibaba Group (9988 HK), Tencent (700 HK), Baidu (9888 HK), NetEase (9999 HK), Cloud Village (CLV HK), TSMC (2330 TT), Apple Inc (AAPL US)



Global Emerging Markets Weekly: 26 November 2021

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

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 <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.

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.

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.

Equity Capital Markets

Connect Biopharma / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/connect-biopharma-holdings-l" target="_blank" data-smartkarma-citation="entities:32187:1" rel="noopener">Connect Biopharma (CNTB US)</a> is a global clinical-stage biopharmaceutical company developing therapies for the treatment of T cell-driven inflammatory diseases. Connect has a pipeline of four drug candidates. The two most advanced clinical-stage programs, CBP-201 and CBP-307, are potentially differentiated product candidates against validated targets.Connect has launched a Nasdaq IPO to raise net proceeds of $135 million at the mid-point of the IPO price range of $15.00 and $17.00 per ADS. At the mid-point of the IPO price range, Connect will command a market cap of $863 million.<div class="content-highlight">Connect specialises in designing and developing product candidates that modulate the immune system, with a particular focus on T cells. CBP-201, the lead product candidate, has the potential to bring improved therapeutic benefit to atopic dermatitis (AD) patients than the current standard of care. CBP-307 has the potential to deliver best-in-class lymphocyte recovery times in combination with a well-tolerated safety profile for the treatment of UC (ulcerative colitis) and CD (Crohn’s disease). Overall, we believe that the prospects of Connect’s clinical-stage drug assets are favourable. We will discuss the rNPV of the assets in our next note.</div>

Connect Biopharma (CNTB US) is a global clinical-stage biopharmaceutical company developing therapies for the treatment of T cell-driven inflammatory diseases. Connect has a pipeline of four drug candidates. The two most advanced clinical-stage programs, CBP-201 and CBP-307, are potentially differentiated product candidates against validated targets.Connect has launched a Nasdaq IPO to raise net proceeds of $135 million at the mid-point of the IPO price range of $15.00 and $17.00 per ADS. At the mid-point of the IPO price range, Connect will command a market cap of $863 million.Connect specialises in designing and developing product candidates that modulate the immune system, with a particular focus on T cells. CBP-201, the lead product candidate, has the potential to bring improved therapeutic benefit to atopic dermatitis (AD) patients than the current standard of care. CBP-307 has the potential to deliver best-in-class lymphocyte recovery times in combination with a well-tolerated safety profile for the treatment of UC (ulcerative colitis) and CD (Crohn’s disease). Overall, we believe that the prospects of Connect’s clinical-stage drug assets are favourable. We will discuss the rNPV of the assets in our next note.

AlphaSituations-Event/Catalyst Driven Research, AlphaSituations

Robert Sassoon

AlphaSituations-Event/Catalyst Driven Research

AlphaSituations

Since its establishment, AlphaSituations has delivered a track record of outperformance with a hit rate of winners of more than 70% of its portfolio of ideas generating annualized average returns of 20%. In January 2022, AlphaSituations was contracted by Water Tower Research, an investor engagement and stakeholder communication platform to provide coverage of Special Situations

Event-Driven

Contingent value rights, or CVRs, are  arguably the rarest security class on a stock exchange, but have become more prevalent, particularly as part of the make-up in Biopharma merger transaction terms in the last few years. While these instruments do offer advantages to asset acquirers, we demonstrate below that CVR recipients rarely benefit.

Contingent value rights, or CVRs, are  arguably the rarest security class on a stock exchange, but have become more prevalent, particularly as part of the make-up in Biopharma merger transaction terms in the last few years. While these instruments do offer advantages to asset acquirers, we demonstrate below that CVR recipients rarely benefit.

MergerTalk: Contingency Value Rights - A Track Record Found Wanting

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Jacobio Pharmaceuticals / Equity Capital Markets

Recently, <a href="https://www.smartkarma.com/entities/jacobio-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:29696:1" rel="noopener">Jacobio Pharmaceuticals (1588148D CH)</a> got the approval to list on the main board of the Hong Kong Stock Exchange. Founded in 2015, Jacobio is committed to providing products and solutions to people’s health with a platform and expertise in developing allosteric inhibitors against protein tyrosine phosphatase, KRAS and transcriptional factors. In China, Jacobio is the first to explore the KARS signaling pathway and is also the leading company in this field. Since the establishment more than five years ago, Jacobio has developed rapidly and steadily, and its pipeline is very distinctive. The following provides the insights on its pipeline.

Recently, Jacobio Pharmaceuticals (1588148D CH) got the approval to list on the main board of the Hong Kong Stock Exchange. Founded in 2015, Jacobio is committed to providing products and solutions to people’s health with a platform and expertise in developing allosteric inhibitors against protein tyrosine phosphatase, KRAS and transcriptional factors. In China, Jacobio is the first to explore the KARS signaling pathway and is also the leading company in this field. Since the establishment more than five years ago, Jacobio has developed rapidly and steadily, and its pipeline is very distinctive. The following provides the insights on its pipeline.

Pre-IPO Jacobio Pharmaceuticals - Insights on Pipeline

United States

Sanofi is a global pharmaceutical company that researches, develops and manufactures prescription pharmaceuticals and vaccines.  The Company develops cardiovascular, thrombosis, metabolic disorder, central nervous system, internal medicine and oncology drugs, and vaccines.

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Sanofi ADR (SNY US)

Global Emerging Markets Weekly: 26 November 2021

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity...

Wium Malan, CFA

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

Connect Biopharma IPO: Potent Medicine

Connect has launched a Nasdaq IPO to raise net proceeds of $135m at the mid-point of the IPO price range. Overall, we believe that the prospects of...

Arun George

MergerTalk: Contingency Value Rights - A Track Record Found Wanting

CVRs have seen more usage in biopharma deals in the last few years, but is that a trend for investors to get excited about?

Robert Sassoon

Pre-IPO Jacobio Pharmaceuticals - Insights on Pipeline

This article analyzed the compelling and distinctive pipeline of Jacobio Pharmaceuticals in terms of projects. Meanwhile, it also disclose the...

Xinyao (Criss) Wang

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