In today’s briefing:
- Sony – State Of Play Highlights VR Ambitions
- Integra Indocabinet (WOOD IJ) – A Polished Start to the Year
- Shanghai/Shenzhen Southbound Connect: Weekly Moves (2 June 2022)
- Shorting Entry Point Coming on Kakao Pay
- RiverPark Short Term High Yield Fund & RiverPark Strategic Income Fund Q1 2022 Letter
- RiverPark Floating Rate CMBS Fund Q1 2022 Commentary
- Longleaf Partners International Fund Q1 2022 Commentary
- Longleaf Partners Global Fund Q1 2022 Commentary
Sony – State Of Play Highlights VR Ambitions
- Sony’s State of Play today highlighted a variety of games headlined by Capcom’s Street Fighter 6 and Resident Evil 4 Remake and Square Enix’s Final Fantasy 16.
- The title line-up was strong but the standout in our view was the degree of support Sony appears to be getting for PSVR2.
- We had commented on this previously but it is increasingly looking like a key differentiating factor for PlayStation and no longer a gimmick.
Integra Indocabinet (WOOD IJ) – A Polished Start to the Year
- Integra Indocabinet’s recent 1Q2022 results confirmed the strong momentum in its wooden furniture and component sales to the US, which have seen even stronger growth than last year.
- Manufactured exports saw growth of +114% YoY in 1Q2022, whilst wooden building components saw growth of +194% YoY, as the company continued to gain market share in the US market.
- Integra Indocabinet trades on 8.3x FY21E PER and 8.1x FY22E PER, with consensus forecast EPS growth of +2.6% and +11.6% for FY2022E and FY2022E looking too low.
Shanghai/Shenzhen Southbound Connect: Weekly Moves (2 June 2022)
- Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
- Overall, net inflow was ~US$0.8bn, split (roughly) US$0.2bn for Shanghai and US$0.6bn Shenzhen.
- The largest inflows were into CNOOC Ltd (883 HK), China Mobile (941 HK), and Kuaishou Technology (1024 HK). The largest outflows were in Tencent (700 HK) and ICBC (1398 HK).
Shorting Entry Point Coming on Kakao Pay
- Is Kakao Pay showing an upward trend after hitting bottom? It doesn’t seem to me yet. The NPS is the only buyer who has recently driven the share price up.
- I’d consider betting on the decline in Kakao Pay’s share price once this passive flow is completed. An ideal entry point? I would avoid the June 9 rebalancing trading day.
- However, it is unlikely that this passive flow factor will spill over after June 9. So I’d consider building up a short position from late June 9 towards the close.
RiverPark Short Term High Yield Fund & RiverPark Strategic Income Fund Q1 2022 Letter
- Founded in 2006 by Morty Schaja and Mitch Rubin, RiverPark manages research-driven, focused strategies in equities, fixed income and venture capital.
- Called and Tendered securities continue to be a significant component of our purchases. The supply of these bonds remained ample during most of the period.
- In an unpredictable market, RiverPark Strategic Income continues to stay conservative, with an effective maturity a fraction of the indices while maintaining comparative yields.
RiverPark Floating Rate CMBS Fund Q1 2022 Commentary
- Founded in 2006 by Morty Schaja and Mitch Rubin, RiverPark manages research-driven, focused strategies in equities, fixed income and venture capital.
- For our portfolio, that technical downward price pressure is abating, as the new issuance has been absorbed and as higher coupons have attracted new buyers.
- While we face challenges at home and abroad, we believe this is an excellent time to invest in the Fund.
- Inflation is our number one concern for the year ahead and ourportfolio is ideally positioned for it to maximize returns and to minimize rate driven losses.
Longleaf Partners International Fund Q1 2022 Commentary
- Longleaf Partners Funds is a suite of mutual funds and UCITS funds that Southeastern Asset Management, the investment advisor to the Longleaf Partners Funds, created in 1987 as a way for Southeastern employees to invest alongside their clients.
- Longleaf Partners International Fund declined 12.04% in the first quarter, while the MSCI EAFE Index declined 5.91%.
- New investments have a high hurdle to qualify given our conviction in our current holdings and the steep discount of the portfolio.
- We believe our companies in Asia and Europe are well positioned to navigatethe challenges facing each region today.
Longleaf Partners Global Fund Q1 2022 Commentary
- Longleaf Partners Funds is a suite of mutual funds and UCITS funds that Southeastern Asset Management, the investment advisor to the Longleaf Partners Funds, created in 1987 as a way for Southeastern employees to invest alongside their clients.
- Longleaf Partners Global Fund declined 5.84% in the first quarter, roughly in line with the MSCI World’s 5.15% decline.
- In a volatile quarter for markets across the globe, we saw one of the largest disconnects between price and value per share performance that we have seen for our portfolio in a long time.
- We remain fully invested with less than 2% cash, and our on-deck list isgrowing longer amid market volatility.
- We believe our companies in Asia and Europe are well positioned to navigatethe challenges facing each region today.
Before it’s here, it’s on Smartkarma
