Derivatives and Quantitative Strategist

Gaudenz Schneider

Event-Driven

<ul>
<li>US equity indices led global markets in a post-election sharp decline in implied volatility.</li>
<li>With only 34 trading days left in 2024, investors might want to hedge the gains from a profitable year with tactical long puts.</li>
<li>Several markets make good candidates for long put positions due to a combination of cheap options and potentially bearish factors. One example being the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> </li>
</ul>


US equity indices led global markets in a post-election sharp decline in implied volatility.
With only 34 trading days left in 2024, investors might want to hedge the gains from a profitable year with tactical long puts.
Several markets make good candidates for long put positions due to a combination of cheap options and potentially bearish factors. One example being the S&amp;P/ASX 200 (AS51 INDEX) 


EQD | Global Option Implied Volatility – 34 Trading Days Left in 2024, Year-End Positioning.

External broker reports(aggregated public sources), CardinalStone

CardinalStone

External broker reports(aggregated public sources)

CardinalStone is an independent, multi-asset investment management firm offering an assortment of financial services to a diverse institutional, high net worth and retail clientele base. The company began operations in June 2008 and its business is conducted across six divisions – Investment Banking, Asset Management, Securities Trading, Trust Services, Registrar Services and Financing. Headquartered in Lagos with offices in Abuja, Nigeria, the firm and its licensed subsidiaries diligently works with its clients to create bespoke solutions for their needs.

Thematic (Sector/Industry)

<ul><li>Global equity markets continued their bearish trend in October, with the MSCI World Index declining by 1.3% and the MSCI Emerging Markets Index dropping by 4.5%.</li><li>These declines were primarily driven by the significant sell-offs in major technology stocks and limited followthrough on anticipated stimulus measures from Beijing.</li><li>In the U.S. market, both the S&amp;P 500 and the NASDAQ appeared set to close the month with gains stemming from expectations of tamer monetary policies and positive data (YoY inflation printing lower at 2.4% and YoY unemployment rate holding steady at 4.1%), signalling a “soft landing”. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Global equity markets continued their bearish trend in October, with the MSCI World Index declining by 1.3% and the MSCI Emerging Markets Index dropping by 4.5%.These declines were primarily driven by the significant sell-offs in major technology stocks and limited followthrough on anticipated stimulus measures from Beijing.In the U.S. market, both the S&amp;P 500 and the NASDAQ appeared set to close the month with gains stemming from expectations of tamer monetary policies and positive data (YoY inflation printing lower at 2.4% and YoY unemployment rate holding steady at 4.1%), signalling a “soft landing”. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>A monthly review of how the markets and our themes are currently performing</li>
<li>Analysing what went wrong and what went right in stocks and sectors</li>
<li>Highlighting positions added or removed from the thematic investment portfolio</li>
</ul>


A monthly review of how the markets and our themes are currently performing
Analysing what went wrong and what went right in stocks and sectors
Highlighting positions added or removed from the thematic investment portfolio


October Themes and Thematic Portfolio Review

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>Our long-term pre-event candidate <a href="https://www.smartkarma.com/entities/celsys-inc" target="_blank" data-smartkarma-citation="entities:20774:1" rel="noopener">CELSYS (3663 JP)</a> has moved to TSE Prime. There will be a TOPIX Inclusion event on 30-Oct-24. The stock has outperformed TOPIX by 43% since <a href="https://www.smartkarma.com/insights/topix-inclusions-who-is-ready-july-2024" target="_blank" rel="noopener">July</a>.</li>
<li>
<a href="https://www.smartkarma.com/entities/pksha-technology-inc" target="_blank" data-smartkarma-citation="entities:26181:1" rel="noopener">PKSHA Technology (3993 JP)</a> and <a href="https://www.smartkarma.com/entities/genova-inc" target="_blank" data-smartkarma-citation="entities:43939:1" rel="noopener">GENOVA (9341 JP)</a> also moved to the TSE Prime market in September and will be having TOPIX Inclusion events at the end of October 2024.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
Our long-term pre-event candidate CELSYS (3663 JP) has moved to TSE Prime. There will be a TOPIX Inclusion event on 30-Oct-24. The stock has outperformed TOPIX by 43% since July.

PKSHA Technology (3993 JP) and GENOVA (9341 JP) also moved to the TSE Prime market in September and will be having TOPIX Inclusion events at the end of October 2024.


TOPIX Inclusions: Who Is Ready (Oct 2024)

<ul>
<li>A review of recent events/data impacting our investment themes or outlook</li>
<li>While it may not be what investors are clamouring for - China follows through with its policies.</li>
<li>The broad Japanese indices continue to struggle despite JPY weakness</li>
</ul>


A review of recent events/data impacting our investment themes or outlook
While it may not be what investors are clamouring for - China follows through with its policies.
The broad Japanese indices continue to struggle despite JPY weakness


Overview #11 – China Follows Through While Japan Dithers and India Feeds the Ducks

Japan

The TOPIX, also known as the Tokyo Stock Price Index, is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The index is supplemented by the subindices of the 33 industry sectors. The index calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of January 4, 1968.

TSE Tokyo Price Index TOPIX (TPX INDEX)

EQD | Global Option Implied Volatility – 34 Trading Days Left in 2024, Year-End Positioning.

Global equity indices saw a post-election volatility drop, making options cheap in several, but not all, markets. Consider hedging gains with...

Gaudenz Schneider

Monthly Equities - October 2024

Global equity markets continued their bearish trend in October, with the MSCI World Index declining by 1.3% and the MSCI Emerging Markets Index...

CardinalStone

October Themes and Thematic Portfolio Review

This insight was Incorrectly titled September review while it is a review of markets and themes for October including HK/China, Japan, India,...

Rikki Malik

TOPIX Inclusions: Who Is Ready (Oct 2024)

The LONGs (Basket A) have outperformed the SHORTs (Basket B) modestly by 0.62% from 7th October to 30th October. On average, the LONGs are down...

Janaghan Jeyakumar, CFA

Overview #11 – China Follows Through While Japan Dithers and India Feeds the Ducks

A review of recent events/data impacting our investment themes and outlook. We look at the big kahunas in Asia - China, Japan and India

Rikki Malik

EQD | Global Option Implied Volatility – 34 Trading Days Left in 2024, Year-End Positioning.

​Global equity indices saw a post-election volatility drop, making options cheap in several, but not all, markets. Consider hedging gains with...

Gaudenz Schneider

Monthly Equities - October 2024

Global equity markets continued their bearish trend in October, with the MSCI World Index declining by 1.3% and the MSCI Emerging Markets Index...

CardinalStone

October Themes and Thematic Portfolio Review

This insight was Incorrectly titled September review while it is a review of markets and themes for October including HK/China, Japan, India,...

Rikki Malik

TOPIX Inclusions: Who Is Ready (Oct 2024)

The LONGs (Basket A) have outperformed the SHORTs (Basket B) modestly by 0.62% from 7th October to 30th October. On average, the LONGs are down...

Janaghan Jeyakumar, CFA

Overview #11 – China Follows Through While Japan Dithers and India Feeds the Ducks

A review of recent events/data impacting our investment themes and outlook. We look at the big kahunas in Asia - China, Japan and India

Rikki Malik

Global equity indices saw a post-election volatility drop, making options cheap in several, but not all, markets. Consider hedging gains with...