Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>With the recent announcement of Tencent’s distribution of its JD.com shares to shareholders its other stakes have come under scrutiny. </li>
<li>We have been speculating for some time about whether a split from Tencent was on the cards for Epic. </li>
<li>In the case of Riot we had not expected a sale but it may not be impossible.</li>
</ul>


With the recent announcement of Tencent’s distribution of its JD.com shares to shareholders its other stakes have come under scrutiny. 
We have been speculating for some time about whether a split from Tencent was on the cards for Epic. 
In the case of Riot we had not expected a sale but it may not be impossible.


Tencent – Do Epic Games and Riot Get Sold?

<ul>
<li>Overnight Sony dropped the second trailer for its upcoming Uncharted film which releases on February 18th. </li>
<li>When the first trailer dropped in October, we suggested the film could target a billion dollar box office, more on instinct than anything else. </li>
<li>After this second trailer we are more confident in that figure… all because of a moustache.</li>
</ul>


Overnight Sony dropped the second trailer for its upcoming Uncharted film which releases on February 18th. 
When the first trailer dropped in October, we suggested the film could target a billion dollar box office, more on instinct than anything else. 
After this second trailer we are more confident in that figure… all because of a moustache.


Sony – How Much Is a Funny Moustache Worth?

Event-Driven

<ul>
<li>We update on our TOPIX-Nikkei Skew Trade again as we head into the end of the year with markets remaining choppy.</li>
<li>Given likely drops in liquidity but continued choppiness in markets we feel that liquidity risk will be important over the next 2-3 weeks. </li>
<li>Given that, we quite like the risk-reward skew on offer here.</li>
</ul>


We update on our TOPIX-Nikkei Skew Trade again as we head into the end of the year with markets remaining choppy.
Given likely drops in liquidity but continued choppiness in markets we feel that liquidity risk will be important over the next 2-3 weeks. 
Given that, we quite like the risk-reward skew on offer here.


We Like the TOPIX-Nikkei Skew Trade Into End of Year Liquidity Drops

<ul>
<li>Spider-Man: No Way Home appears set to more or less match the opening weekend of Avengers: Infinity War. </li>
<li>This is extremely strong performance especially given lingering pandemic impacts. </li>
<li>It also suggests that our call that the Spider-Man IP would step into the MCU void following Avengers: Endgame is likely correct.</li>
</ul>


Spider-Man: No Way Home appears set to more or less match the opening weekend of Avengers: Infinity War. 
This is extremely strong performance especially given lingering pandemic impacts. 
It also suggests that our call that the Spider-Man IP would step into the MCU void following Avengers: Endgame is likely correct.


<ul>
<li>At the beginning of the month, we suggested that setting up trades based on TOPIX outperforming Nikkei looked interesting. </li>
<li>This skew trade has a slight inherent short bias as Nikkei is more growth skewed but it has nevertheless generated a positive return. </li>
<li>That is despite Nikkei rising 3.8% since we published our initial note.</li>
</ul>


At the beginning of the month, we suggested that setting up trades based on TOPIX outperforming Nikkei looked interesting. 
This skew trade has a slight inherent short bias as Nikkei is more growth skewed but it has nevertheless generated a positive return. 
That is despite Nikkei rising 3.8% since we published our initial note.


Checking in on the Topix-Nikkei Skew Trade

Japan

Sony Corporation manufactures audio, home video game consoles, communications, key device and information technology products for the consumer and professional markets.  The Company's other businesses include music, pictures, computer entertainment, and online businesses.

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Sony Corp (6758 JP)

Tencent – Do Epic Games and Riot Get Sold?

With the recent announcement of Tencent’s distribution of its JD.com shares to shareholders we consider the different implications for the industry...

Mio Kato

Sony – How Much Is a Funny Moustache Worth?

When the first Uncharted trailer dropped we suggested it could target a billion dollars, mostly on instinct. After the second we are more confident...

Mio Kato

We Like the TOPIX-Nikkei Skew Trade Into End of Year Liquidity Drops

Given likely drops in liquidity but continued choppiness in markets we feel that liquidity risk will be important over the next 2-3 weeks. Given...

Mio Kato

Sony – Spider-Man Is the Holiday Hero

Spider-Man: No Way Home is set to match the opening weekend of Avengers: Infinity War supporting our call that the Spider-Man IP would step into...

Mio Kato

Checking in on the Topix-Nikkei Skew Trade

Our TOPIX-Nikkei skew trade has a slight inherent short bias as Nikkei is more growth skewed but it has nevertheless generated a positive return...

Mio Kato

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