In today’s briefing:
- S&P/ASX Index Rebalance (June 2022): Mostly Expected, Some Surprises & Short Interest Spikes
- RiverPark Large Growth Fund Q1 2022 Letter
- S&P500, S&PMid400, and S&PSmall600 Index Changes for June 2022 – More Interesting Than Usual
- FnGuide Top 10 Rebalancing: How We Trade Shinhan IN/Celltrion OUT
- Cocoaland (COLA MK): F&N Scheme At RM1.50/Share
S&P/ASX Index Rebalance (June 2022): Mostly Expected, Some Surprises & Short Interest Spikes
- There is one set of changes to the S&P/ASX 50, one deletion for the S&P/ASX 100, and four adds/ five deletes for the S&P/ASX 200 (AS51 INDEX).
- Passive trackers will need to trade between 2-6 days of ADV on nearly all stocks. Short interest spikes in a few names indicate pre-positioning for the passive flow.
- Core Lithium Ltd (CXO AU) is a potential inclusion to the MVIS Global Rare Earth/Strategic Metals Index in June and that could add to the passive inflows on the stock.
RiverPark Large Growth 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.
- Over this year’s first three months, the RiverPark Large Growth Fund (the “Fund”) lost 19.6%.
- Rather than follow the market’s so-called “de-risking” strategy, we “leaned in” to our higher growth positions (in some cases materially) at what we believe to be generationally attractive prices.
- While we are deeply disappointed by our recent losses, we believe thatwe are currently invested in an exceptional risk-reward portfolio and look forward to strongabsolute and relative returns in the quarters to come.
S&P500, S&PMid400, and S&PSmall600 Index Changes for June 2022 – More Interesting Than Usual
- On 3 June 2022, the S&P DJI Global Index team announced changes to the S&P500, S&P Midcap 400, and S&P SmallCap 600 indices (and a number of other smaller indices).
- VICI Properties (VICI) will replace Cerner (CERN) in S&P500 at close of 7 June. Keurig DrPepper and ON Semiconductor will replace UnderArmour and IPG Photonics at close 17 June.
- This set of rebalances is particularly interesting in terms of non-offsetting flows, unlike many rebals which are just a game of musical shares between the three top indices.
FnGuide Top 10 Rebalancing: How We Trade Shinhan IN/Celltrion OUT
- With the screening period over (May 3-31), Shinhan IN/Celltrion OUT is virtually a foregone conclusion.
- We should consider an individually-hedged approach, instead of a plain long/short, with a tightly moving-together peer, preferably on a single-day trading window.
- I suggest using KB Financial and Celltrion Healthcare as hedges of LONG & SHORT for Shinhan and Celltrion, respectively.
Cocoaland (COLA MK): F&N Scheme At RM1.50/Share
- Fraser & Neave Holdings (FNH MK) is proposing to privatise 27.66%-held Cocoaland Holdings (COLA MK) at RM1.50/share by way of a Scheme.
- The Offer price is a 26.1% premium to last close. Leverage Success, the largest shareholder with 40.65% stake has given an irrevocable undertaking to vote for the Scheme.
- The board of Cocoaland has until the 17 June to respond.
Before it’s here, it’s on Smartkarma
