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

Rikki Malik

Cross Asset Strategy

<ul>
<li>A monthly review at 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 at 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


March Themes and Thematic Portfolio Review

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/emerald-resources-nl" target="_blank" data-smartkarma-citation="entities:17495:1" rel="noopener">Emerald Resources Nl (EMR AU)</a> will be added to the <a href="https://www.smartkarma.com/entities/vaneck-vectors-junior-gold-miners-etf" target="_blank" data-smartkarma-citation="entities:32845:1" rel="noopener">VanEck Vectors Junior Gold Miners ETF (GDXJ US)</a> in March while there are 3 deletions for the index.</li>
<li>The constituent changes along with float and capping changes result in an estimated one-way turnover of 6.4% and a one-way trade of US$263m.</li>
<li>There are 9 stocks with more than US$10m to trade and 9 stocks with over 2x ADV to trade.</li>
</ul>



Emerald Resources Nl (EMR AU) will be added to the VanEck Vectors Junior Gold Miners ETF (GDXJ US) in March while there are 3 deletions for the index.
The constituent changes along with float and capping changes result in an estimated one-way turnover of 6.4% and a one-way trade of US$263m.
There are 9 stocks with more than US$10m to trade and 9 stocks with over 2x ADV to trade.


MV Global Junior Gold Miners Index Rebalance: Over US$500m to Trade

<ul>
<li>
<a href="https://www.smartkarma.com/entities/red-5-ltd" target="_blank" data-smartkarma-citation="entities:7940:1" rel="noopener">Red 5 Ltd (RED AU)</a> and <a href="https://www.smartkarma.com/entities/silver-lake-resources-ltd" target="_blank" data-smartkarma-citation="entities:6529:1" rel="noopener">Silver Lake Resources (SLR AU)</a> have announced a Merger of Equals that would create a mid-tier gold company.</li>
<li>
<a href="https://www.smartkarma.com/entities/red-5-ltd" target="_blank" data-smartkarma-citation="entities:7940:1" rel="noopener">Red 5</a> will acquire 100% of the shares in <a href="https://www.smartkarma.com/entities/silver-lake-resources-ltd" target="_blank" data-smartkarma-citation="entities:6529:1" rel="noopener">Silver Lake Resources</a> and <a href="https://www.smartkarma.com/entities/silver-lake-resources-ltd" target="_blank" data-smartkarma-citation="entities:6529:1" rel="noopener">Silver Lake</a> shareholders will receive 3.434 RED5 shares for each Silver Lake share held.</li>
<li>The swap ratio is near the bottom of the historical price range of the stocks and it is no wonder that <a href="https://www.smartkarma.com/entities/silver-lake-resources-ltd" target="_blank" data-smartkarma-citation="entities:6529:1" rel="noopener">Silver Lake Resources (SLR AU)</a> is being sold today.</li>
</ul>



Red 5 Ltd (RED AU) and Silver Lake Resources (SLR AU) have announced a Merger of Equals that would create a mid-tier gold company.

Red 5 will acquire 100% of the shares in Silver Lake Resources and Silver Lake shareholders will receive 3.434 RED5 shares for each Silver Lake share held.
The swap ratio is near the bottom of the historical price range of the stocks and it is no wonder that Silver Lake Resources (SLR AU) is being sold today.


RED5 & Silver Lake Resources Merger of Equals: Market Loves It (Not!)

<ul>
<li>There are no constituent changes for the <a href="https://www.smartkarma.com/entities/vaneck-vectors-junior-gold-miners-etf" target="_blank" data-smartkarma-citation="entities:32845:1" rel="noopener">VanEck Vectors Junior Gold Miners ETF (GDXJ US)</a> in December, but there are float and capping changes for some stocks.</li>
<li>Estimated one-way turnover is 2.8% and that leads to a one-way trade of US$122m.</li>
<li>There are 13 stocks with over US$5m to trade from passive trackers, though the impact is not very big on the stocks.</li>
</ul>


There are no constituent changes for the VanEck Vectors Junior Gold Miners ETF (GDXJ US) in December, but there are float and capping changes for some stocks.
Estimated one-way turnover is 2.8% and that leads to a one-way trade of US$122m.
There are 13 stocks with over US$5m to trade from passive trackers, though the impact is not very big on the stocks.


MVIS Global Junior Gold Miners Index Rebalance: Few Large Weight Changes

Thematic (Sector/Industry)

<ul>
<li>Real interest rates moving lower together with massively increasing fiscal deficits is a plus for gold.</li>
<li>Gold miners are generally poor long-term investments, but their time is close.</li>
<li>Miners’ margins are improving as revenue increases while costs decrease.</li>
</ul>


Real interest rates moving lower together with massively increasing fiscal deficits is a plus for gold.
Gold miners are generally poor long-term investments, but their time is close.
Miners’ margins are improving as revenue increases while costs decrease.


2024 High Conviction Idea -Why the Time Is Right for Gold Miners

United States

VanEck Vectors Junior Gold Miners ETF is an exchange traded fund incorporated in the USA. The Fund's objective is to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Junior Gold Miners Index. The Fund will normally invest at least 80% of its total assets in securities that comprise the Fund's benchmark index.

VanEck Vectors Junior Gold Miners ETF (GDXJ US)

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VanEck Vectors Junior Gold Miners ETF (GDXJ US)

March Themes and Thematic Portfolio Review

We review overall market performance, our investment themes, highlighting additions and substractions in the thematic portfolio

Rikki Malik

MV Global Junior Gold Miners Index Rebalance: Over US$500m to Trade

There is 1 add and 3 deletes for the GDXJ in March. The constituent changes along with float and capping changes result in an estimated one-way...

Brian Freitas

RED5 & Silver Lake Resources Merger of Equals: Market Loves It (Not!)

Red5 and Silver Lake Resources have announced a merger of equals that seems a better deal for Red5. SLR has been beaten down today but there could...

Brian Freitas

MVIS Global Junior Gold Miners Index Rebalance: Few Large Weight Changes

There are no constituent changes for the stocks, but there are a lot of float changes and capping changes. Estimated one-way turnover is 2.8% and...

Brian Freitas

2024 High Conviction Idea -Why the Time Is Right for Gold Miners

The time is now right for gold miners as the gold price is set to move to new all time highs and margins expand creating a perfect storm for...

Rikki Malik

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)