Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst with experience in fundamental and event-driven research in Frontier and Emerging markets. 

On Smartkarma, I mainly publish insights on index flow events in the Asia-Pacific region. This includes predicting regular and intra-review index changes and estimating upcoming passive flows. I also cover special situations such as mergers & acquisitions, equity offerings, buybacks, and other corporate restructuring events.

Pan-Asia Index Flows & Special Situations

TOPIX Inclusion Pre-Event Trade (2980 JP): SRE Holdings

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

It was shaping up to be a decent TOPIX Inclusion."And Then The Murders Began."*I first identified <a href="https://www.smartkarma.com/entities/faithnetwork-co-ltd" target="_blank" data-smartkarma-citation="entities:29132:1" rel="noopener">FaithNetwork Co Ltd (3489 JP)</a> as a potential TSE1 candidate in my insight <a href="https://www.smartkarma.com/insights/topix-inclusion-pre-events-recent-tachiaigai-bunbai-round-up" target="_blank" data-smartkarma-citation="insights:40509" rel="noopener">TOPIX Inclusion Pre-Events: Recent "Tachiaigai Bunbai" Round-Up</a> in June 2020. The company had explicitly stated they were working towards a TSE1 move when they launched a <a href="https://www2.tse.or.jp/disc/34890/140120200616445521.pdf" target="_blank" rel="noopener">tachiaigai bunbai offering on 16th June 2020</a>. The price was ¥1092 at the time. However, I did not ask investors to buy this name at that time given the uncertain timeline. That was the only offering in the previous 12 months.However, considering the new section transfer requirements I changed my view on this stock to an explicit buy recommendation on 29th September 2020 as explained in <a href="https://www.smartkarma.com/insights/topix-inclusion-trade-summary-sep-2020" target="_blank" data-smartkarma-citation="insights:43700" rel="noopener">TOPIX Inclusion Trade Summary: Sep 2020</a>. The stock was ¥1190 by then. From that point to early February, the share price gained +23.5% (despite having dipped to the ¥1050-60s level in the interim) with majority of this gain coming in the last 5 trading days prior to my latest insight on February 7, <a href="https://www.smartkarma.com/insights/topix-inclusion-faithnetwork-3489-jp" target="_blank" data-smartkarma-citation="insights:47840" rel="noopener">TOPIX Inclusion: FaithNetwork (3489 JP)</a> which came when the company announced its ascension to TSE1.Despite that recent jump, the share price is still 40+% below its IPO Price of ¥2,500 roughly three years ago and I identified the event as a "Small Size Large Impact" (PURPLE) category TOPIX Inclusion in the Quiddity framework so was bullish.Yesterday afternoon we got new news which puts all this in doubt. More below the fold.<hr>* "And Then The Murders Began" is a twitter meme which suggests...<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/195/328/original/Screenshot+2021-03-18+at+7.37.05+PM.png?1616068887" class="editor-image img-responsive" data-smartkarma-image-id="195328"></figure></section>

It was shaping up to be a decent TOPIX Inclusion."And Then The Murders Began."*I first identified FaithNetwork Co Ltd (3489 JP) as a potential TSE1 candidate in my insight TOPIX Inclusion Pre-Events: Recent "Tachiaigai Bunbai" Round-Up in June 2020. The company had explicitly stated they were working towards a TSE1 move when they launched a tachiaigai bunbai offering on 16th June 2020. The price was ¥1092 at the time. However, I did not ask investors to buy this name at that time given the uncertain timeline. That was the only offering in the previous 12 months.However, considering the new section transfer requirements I changed my view on this stock to an explicit buy recommendation on 29th September 2020 as explained in TOPIX Inclusion Trade Summary: Sep 2020. The stock was ¥1190 by then. From that point to early February, the share price gained +23.5% (despite having dipped to the ¥1050-60s level in the interim) with majority of this gain coming in the last 5 trading days prior to my latest insight on February 7, TOPIX Inclusion: FaithNetwork (3489 JP) which came when the company announced its ascension to TSE1.Despite that recent jump, the share price is still 40+% below its IPO Price of ¥2,500 roughly three years ago and I identified the event as a "Small Size Large Impact" (PURPLE) category TOPIX Inclusion in the Quiddity framework so was bullish.Yesterday afternoon we got new news which puts all this in doubt. More below the fold.* "And Then The Murders Began" is a twitter meme which suggests...

FaithNetwork TOPIX Inclusion: And Then The Murders Began