Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Thoughts on Amazon –What Does Its Valuation Tells Us?

Netflix & Amazon Expand in Korea – Not a Coincidence

Okja: The Fight Between Netflix Vs. CJ CGV

Quiddity Advisors

Event-Driven

On 21 November, the TSE announced that it was reassigning then TSE2-listed <a href="https://www.smartkarma.com/entities/14502" target="_blank" data-smartkarma-citation="entities:14502:1">Benefit One Inc (2412 JP)</a> to the TSE's First Section and the company <a href="https://corp.benefit-one.co.jp/IR/news/pdf/2018/20181121.pdf" target="_blank">confirmed</a> the news. Exactly 3 months prior to that, the company had <a href="https://corp.benefit-one.co.jp/IR/news/pdf/2018/20180821.pdf" target="_blank">announced</a> that it had applied to the TSE for such reassignment. This was after a May 7th <a href="https://corp.benefit-one.co.jp/IR/pressrelease/pdf/2018/20180507_5.pdf" target="_blank">announcement</a> accompanying its FY2017 results that it planned to apply for such reassignment. The news that the company made it to the TSE First Section is well-signalled, and it will surprise nobody.This is a reasonably "large small cap" company (¥250 bn market cap at Thursday's close) TOPIX inclusion.<h2>The TOPIX Inclusion</h2>TSE1 assignment would trigger inclusion into the TOPIX Index. Based on the TOPIX Index Methodology (p7 of the <a href="http://www.jpx.co.jp/english/markets/indices/line-up/files/e_cal_16_Divf.pdf" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://www.jpx.co.jp/english/markets/indices/line-up/files/e_cal_16_Divf.pdf&amp;source=gmail&amp;ust=1543503062935000&amp;usg=AFQjCNHDJWz6VJo05ccZbBI-c-J0OahTDg">TOPIX Index Guidebook</a>), inclusion will be on the last business day on the month following entrance into the First Section. If the company enters TSE 1 in November an inclusion event can be expected at the end of December 2018 (the close of the 27th).

On 21 November, the TSE announced that it was reassigning then TSE2-listed Benefit One Inc (2412 JP) to the TSE's First Section and the company confirmed the news. Exactly 3 months prior to that, the company had announced that it had applied to the TSE for such reassignment. This was after a May 7th announcement accompanying its FY2017 results that it planned to apply for such reassignment. The news that the company made it to the TSE First Section is well-signalled, and it will surprise nobody.This is a reasonably "large small cap" company (¥250 bn market cap at Thursday's close) TOPIX inclusion.The TOPIX InclusionTSE1 assignment would trigger inclusion into the TOPIX Index. Based on the TOPIX Index Methodology (p7 of the TOPIX Index Guidebook), inclusion will be on the last business day on the month following entrance into the First Section. If the company enters TSE 1 in November an inclusion event can be expected at the end of December 2018 (the close of the 27th). 

Benefit One (2412 JP) : Big TSE1 Move and TOPIX Inclusion