Daily Brief Thematic (Sector/Industry): Ohayo Japan | December Kicks Off with Record Highs for Nasdaq and more

• U.S. stocks opened December with mixed results as the Nasdaq and S&P 500 hit record highs
• Super Micro Computer’s (+28%) stock rebounded after an external investigation found no financial misconduct
• Stellantis (-6.2%) announced CEO Carlos Tavares’ immediate resignation, more than a year ahead of schedule

• US semi-cap names continuing to jump on looser US restrictions than expected.
• See attached table for short interest levels for Japan SPE plays.
• Gelsinger out and uncertainty up, although JP suppliers will see minimal reaction.

• This is a very light note, given time constraints. It’s rumored that on Monday, we will have new export controls, which seem to be massively light.
• Importantly, they are going to exclude CXMT altogether.
• History is a pretty good guide. Almost every single export restriction has led to bad returns prior, bad returns on the week off, and positive returns almost 100% of the time 6 months after for SOXX. This applies doubly to Semicap.

• We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
• Portfolio changes: Five stock remains, nine stocks added into portfolio
• Since its inception, it has generated a before-fee total return of 193% versus the MSCI Asia ex Japan of 89%

• We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology
• Portfolio changes: Three stocks remain, and 11 stocks added into portfolio
• Since its inception, the portfolio has generated a before-fee total return of 259% versus MSCI ASEAN’s 44%

• AI’s evolution is poised to revolutionize industries and economies globally, with potential for job transformation and economic growth.
• The build-out phase of AI is benefiting companies in sectors like chip producers and data center architecture, with opportunities expanding into adoption and transformation phases.
• Investors can position themselves for success by taking an active approach, seeking expertise and identifying promising opportunities in the AI space for long-term growth and value gains.

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• We review last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
• The short holiday week saw another controversial name picked for NIH head, PSTX was acquired by RHHBY, AMGN underwhelmed with obesity data, and Medicare proposed to cover LLY and NVO obesity drugs.
• In addition, SRPT filled its pipeline with ARWR assets, BHVN’s poor SMA results benefited SRRK, and MRK expanded its PAH drug benefit.

• The WTR Sustainable Index was up 1.3% W/W versus the S&P 500 Index (up 1.1%), the Russell 2000 Index (up 1.2%) and the Nasdaq Index (up 0.7%).
• Energy Technology (14.1% of the index) was up 1.4%, while Industrial Climate and Ag Technology (47.7% of the index) was down 0.1%, ClimateTech Mining was up 2.5%, and Advanced Transportation Solutions (20.7% of index) was up 3.0%.
• Top 10 Performers: OPTT, KULR, ALLIF, ACHR, BLDE, FCEL, INVZ, EGT, AMMP, NRGV