Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cam Hui has been professionally involved in the financial markets since 1985 in a variety of roles, both as a quantitative equity portfolio manager and as a sell-side analyst. He graduated with a degree in Computer Science from the University of British Columbia in 1980 and obtained his CFA Charter in 1989.

Cross-Asset Strategist & Quantitative Analyst

Covid-19/Economic Impact/Huawei/Hong Kong/Mastercard

COVID-19: An Alternative Data Approach To Analysing China's Return To Work Status

COVID-19 Alternative Data China Impact Assessment Update #1

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
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Cross-Asset & Quantitative Research

Cross Asset Strategy

China & United states / Cross Asset Strategy

What should investors make of the market’s recent air pocket and subsequent recovery? John Authers, writing at Bloomberg, proposed an analytical framework where investors view the coronavirus outbreak mainly as a China problem. The companies with high China exposure have tanked in response to the virus scare and dramatically underperformed global stocks.
While global investors fret about the economic impact of China’s slowdown in the wake of the coronavirus infection, the PBOC has responded with a tsunami of liquidity to support the market. Moreover, extraordinary measures have been put in place to forbid short selling and to discourage major shareholders from selling their shares. In response, the Asian stock markets have rocketed upward after a brief corrective period, and global markets have followed suit with a risk-on tone.
These policy responses beg two obvious questions: 1) Is the melt-up back?; and 2) If the market is focused mainly on China and the coronavirus, should investors even try to fight the PBOC?
The jury is still out on those questions.
The short-term bull case is supported by abundant central bank liquidity, and emerging evidence of a pre-coronavirus cyclical rebound from non-China economies. On the other hand, bullish sentiment did not fully reset and valuation is extended.
In light of the risks evident in the market, we suggest that investment-oriented accounts maintain a neutral risk position, with an asset allocation roughly in line with policy asset mix.

What should investors make of the market’s recent air pocket and subsequent recovery? John Authers, writing at Bloomberg, proposed an analytical framework where investors view the coronavirus outbreak mainly as a China problem. The companies with high China exposure have tanked in response to the virus scare and dramatically underperformed global stocks.
While global investors fret about the economic impact of China’s slowdown in the wake of the coronavirus infection, the PBOC has responded with a tsunami of liquidity to support the market. Moreover, extraordinary measures have been put in place to forbid short selling and to discourage major shareholders from selling their shares. In response, the Asian stock markets have rocketed upward after a brief corrective period, and global markets have followed suit with a risk-on tone.
These policy responses beg two obvious questions: 1) Is the melt-up back?; and 2) If the market is focused mainly on China and the coronavirus, should investors even try to fight the PBOC?
The jury is still out on those questions.
The short-term bull case is supported by abundant central bank liquidity, and emerging evidence of a pre-coronavirus cyclical rebound from non-China economies. On the other hand, bullish sentiment did not fully reset and valuation is extended.
In light of the risks evident in the market, we suggest that investment-oriented accounts maintain a neutral risk position, with an asset allocation roughly in line with policy asset mix.

Is the Melt-Up Back?