In today’s briefing:
- S&P/ASX Index Rebalance (June 2022): Mostly Expected, Some Surprises & Short Interest Spikes
- Elastic: Beat and Raise. $2B in Total Revenue in FY25
- Longleaf Partners Asia Pacific UCITS Fund Q1 2022 Commentary
- Diamond Hill Small Cap Fund Q1 2022 Market Commentary
- Longleaf Partners Global UCITS Fund Q1 2022 Commentary
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.
Elastic: Beat and Raise. $2B in Total Revenue in FY25
- Elastic NV (ESTC US) reported stronger than expected 4QFY22 results, and management provided guidance for FY25 total revenue of $2 billion.
- The net expansion rate was 140%+ for Elastic Cloud in 4QFY22, and the company expects cloud revenue to exceed 50% of total revenue by 4QFY24.
- Elastic NV (ESTC US) appears well-positioned to outperform across observability and security market segments. Management was confident in achieving growth objectives in FY23 and beyond.
Longleaf Partners Asia Pacific UCITS 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 Asia Pacific UCITS Fund returned -7.48% in the first quarter, trailing the MSCI AC Asia Pacific Index.
- There is an immense opportunity to be in the right companies as they close that massive discount to a more reasonable discount versus global peers.
Diamond Hill Small 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 environment, our portfolio’s negative returns still outpaced the Russell 2000 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.
Longleaf Partners Global UCITS 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 UCITS Fund declined 5.02% in the first quarter, roughly in line with the MSCI World’s 5.15% decline.
- The Fund saw a continuation of China/Hong Kong exposure weighing on absolute and relative returns.
- We are close to fully invested with approximately 8% cash, and our on-decklist is growing 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
