Founder Evidente. Top rated quantitative analyst, Evidente

Sam Ferraro

Founder Evidente. Top rated quantitative analyst

Evidente

Evidente is an independent financial education firm that delivers innovative financial advice to wholesale investors, including active long only funds, hedge funds, pension funds, and sovereign wealth funds, in Australia and globally.  Drawing on academic research in asset pricing, behavioural finance and portfolio construction, Evidente provides wholesale investors with commercial solutions to stock selection and asset allocation decisions across equities and other asset classes.

Thematic (Sector/Industry)

Australia Materials / Thematic (Sector/Industry)

<ul><li>In this post, Evidente draws on recent analysis undertaken by the RBA of developments in China's residential property markets.  Thanks to a number of government policies implemented since 2014, there has been a substantial pick-up in conditions since the start of the year, particularly an acceleration in residential sales, as measured by floor space sold.</li><li>The strong pick-up has supported the renewed strength in global commodity prices, but has probably contributed to key growing vulnerabilities and risks, around leverage of property developers, the still large stock of unsold housing inventory and annual growth in house prices that appears close to a peak if history is any guide. </li><li>Against this backdrop, Evidente's model portfolio retains a substantial underweight in the Materials sector, with overweights in RIO, BSL and MND representing the key exposures.  </li></ul>

In this post, Evidente draws on recent analysis undertaken by the RBA of developments in China's residential property markets.  Thanks to a number of government policies implemented since 2014, there has been a substantial pick-up in conditions since the start of the year, particularly an acceleration in residential sales, as measured by floor space sold.The strong pick-up has supported the renewed strength in global commodity prices, but has probably contributed to key growing vulnerabilities and risks, around leverage of property developers, the still large stock of unsold housing inventory and annual growth in house prices that appears close to a peak if history is any guide. Against this backdrop, Evidente's model portfolio retains a substantial underweight in the Materials sector, with overweights in RIO, BSL and MND representing the key exposures.  

China National Building Material (3323 HK)

Jilin Liyuan Precision Manufactrg (002501 CH)

Zhejiang Longsheng Group Co., (600352 CH)

Yunnan Chihong Zinc&Germanium Co, Ltd. (600497 CH)

Jinduicheng Molybdenum Co, Ltd. (601958 CH)

Lianhe Chemical Technology Co, Ltd. (002250 CH)

Gansu Jiu Steel Group Hongxing Iron (600307 CH)

Chongqing Iron & Steel Co Ltd H (1053 HK)

Inner Mongolia Baotou Steel Union (600010 CH)

Jiangsu Protruly Technology Group (600074 CH)

Inner Mngl Jnzhng Eng & Cmci Gp (601216 CH)

Zibo Qixiang Tengda Chemical Co, Ltd. (002408 CH)

Shandong Sinobioway Biomedicine (002581 CH)

Tongling Nonferrous Metals Group (000630 CH)

Ji Lin Ji En Nickel Industry Co., (600432 CH)

Shandong Gold Mining Co., Ltd (600547 CH)

China Northern Rare Earth Group High-Tech (600111 CH)

China Northern Rare Earth Group High-Tech

Xinxing Ductile Iron Pipes Co, Ltd. (000778 CH)

Beijing Sanju Ep& New Materials (300072 CH)

Shenzhen Jinjia Color Printing Gp (002191 CH)

Kingenta Ecological Enginering Gp (002470 CH)

Cefc Anhui International Holdi (002018 CH)

Jiangsu Kangde Xin Composite Mtrl Co (002450 CH)

Zhejiang Zhongcheng Packing Mtrl (002522 CH)

China Housing: Strong Recovery but Debt and Vulnerabilities Rise