In today’s briefing:
- Stock Connect Changes & MSCI/FTSE Deletions on Friday
- Atlas Arteria in the Crosshairs of IFM Investors
- Atlas Arteria Group (ALX AU): IFM Makes an Approach
- India Channel Insight #37 | Escorts & Mahindra & Mahindra (Tractors)
- Diamond Hill Large Cap Concentrated Fund Q1 2022 Market Commentary
- Diamond Hill Mid Cap Fund Q1 2022 Market Commentary
Stock Connect Changes & MSCI/FTSE Deletions on Friday
- Changes to the Northbound Stock Connect Buy and Sell list were announced yesterday with 35 SSE-listed stocks becoming sell-only, and 32 SZSE-listed stocks becoming sell-only.
- This will result in the deletion of 45 stocks from the FTSE All-World, All-Cap and Micro-cap indices, while there will be 9 deletions from the MSCI Standard Index.
- There are a few stocks with over 1 day of ADV to sell from passive trackers and these stocks could trade weaker than the market over the next few days.
Atlas Arteria in the Crosshairs of IFM Investors
- IFM Investors is seeking to amass a 15% interest in Atlas Arteria (ALX AU) through a combination of total return swaps and physical shares, according to AFR.
- If successful in securing its stake, IFM intends to request due diligence access to judge if it can lob a privatisation proposal.
- Jarden, IFM’s broker, was buying shares at A$8.10 a share, a 14% premium to the last close but below the Australian takeover premium range of 20% to 40%.
Atlas Arteria Group (ALX AU): IFM Makes an Approach
- IFM bought around 67.1m shares (7% of shares out) of Atlas Arteria (ALX AU) at A$8.1/share last evening taking its total holding to around 15% of shares outstanding.
- IFM intends to request certain information that would help it assess whether it can submit a non-binding proposal to acquire all the shares in Atlas Arteria that it does not own.
- With the indicative offer floor set at A$8.1/share, Atlas Arteria still trades cheaper than Transurban Group and offers a 14% premium to last close and even higher premiums to longer-term VWAPs.
India Channel Insight #37 | Escorts & Mahindra & Mahindra (Tractors)
- Consumer sentiment and demand environment is stable in Rural India.
- There is a bit of optimism and hope of breaching FY20 volumes in FY23, supported with some pricing action.
- Technical/Product issues are leading to a loss of market share for Escorts Ltd (ESC IN)
Diamond Hill Large Cap Concentrated Fund Q1 2022 Market Commentary
- Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment.
- During a volatile quarter, Diamond Hill Large Cap Concentrated Fund performed roughly in line with the Russell 1000 Index.
- The market environment in Q1 provided a meaningful opportunity for us to initiate positions in high-quality names.
- From current levels, equity market returns over the next five years are likely to be below historical averages.
Diamond Hill Mid Cap Fund Q1 2022 Market Commentary
- Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment.
- Amid a rocky market quarter overall, Diamond Hill Mid Cap Fund’s negative returns still outpaced the Russell Midcap Index by a healthy margin in Q1.
- After a strong rebound in 2021, global GDP growth is expected to moderate in 2022.
- From current levels, equity market returns over thenext five years are likely to be below historical averages.
Before it’s here, it’s on Smartkarma
