In today’s briefing:
- MSCI May 2022 Index Rebalance: Flows at the Close Today & Performance So Far
- Short LG Corp on the Unsustainable Price Spike
- CALB Pre-IPO – The Positives – Has Been Growing Fast
- Harding Loevner International Equity Fund Q1 2022 Letter
MSCI May 2022 Index Rebalance: Flows at the Close Today & Performance So Far
- For Asia Pacific, there are 48 adds/76 deletes for the Standard Indices and 166 adds/147 deletes for the Small Cap Index that will be implemented at the close today.
- The adds have outperformed the deletes on average over the last few weeks/months. A long adds/short deletes trade performed better for Small Caps as compared to the Standard index.
- There are a lot of stocks that will have same-way flow from other index trackers over the next few weeks and there could be a higher impact on these names.
Short LG Corp on the Unsustainable Price Spike
- The question now is whether this event can lead to a structural uptrend in LG Corp. I am skeptical about this.
- LG Corp took a preemptive action to increase its attractiveness as a dividend stock to prevent a share price decline ahead of the listing of LG CNS.
- However, this measure does not address the root cause of LG Corp’s massive NAV discount. So, I would consider a short position setup for LG Corp.
CALB Pre-IPO – The Positives – Has Been Growing Fast
- CALB aims to raise around US$1.5bn in its Hong Kong IPO.
- CALB undertakes design, R&D, production and sales of EV batteries and Energy Storage Systems (ESS) products.
- In this note, we will talk about the positive aspects of the deal.
Harding Loevner International Equity Fund Q1 2022 Letter
- Harding Loevner has been investing globally in high-quality, growing businesses based on disciplined industry research since 1989.
- Stock markets fell in the quarter, as the world watched in horror Russia’s invasion of Ukraine.
- While we are optimistic that China will maintain its neutrality in the war, we can’t dismiss the possibility we are wrong.
- In recent years, as growth investors chased speculative and expensive“disruptive innovators” up, and more recently down, we have maintained a steady commitment to quality growth at steady premiums to the market over time.
Before it’s here, it’s on Smartkarma