Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Japanese Cosmetics Pair Trade Opportunities As Japan Prepares to Declare a State of Emergency

Kose: China and E-Commerce Propels Kose’s Performance Towards the Pre-Pandemic Level

Japan Cosmetics Pair Trade: Long Fancl/Short Kose

Japan Cosmetics Pair Trade: Long Kose/​Short Shiseido

KOSÉ 1QFY21 Earnings Preview: China Recovery Overlooked

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

In <a href="https://www.smartkarma.com/insights/japan-cosmetics-pair-trade-long-fancl-short-kose" target="_blank" rel="noopener">Japan Cosmetics Pair Trade: Long Fancl/​Short Kose</a>, we suggested setting up a long/short pair trade between <a href="https://www.smartkarma.com/entities/fancl-corp" target="_blank" data-smartkarma-citation="entities:15862:1" rel="noopener">Fancl Corp (4921 JP)</a> and <a href="https://www.smartkarma.com/entities/kose-corp" target="_blank" data-smartkarma-citation="entities:18009:1" rel="noopener">Kose Corp (4922 JP)</a> before Kose’s Q2 earnings release on 30th October 2020. Kose released its 2QFY21 results last Friday and results were underwhelming as expected.The main catalyst for our long/short trade idea was the quarterly earnings. Part one of the catalyst (Kose’s earnings) yielded 10.6% as Kose’s share price has underperformed Fancl by the same percentage since our previous insight. We believe Part two (Fancl’s earnings) could realise an extra 5-6% in market-neutral returns and therefore suggests investors wait until Fancl’s quarterly results on 4th November 2020 before closing the trade.

In Japan Cosmetics Pair Trade: Long Fancl/​Short Kose, we suggested setting up a long/short pair trade between Fancl Corp (4921 JP) and Kose Corp (4922 JP) before Kose’s Q2 earnings release on 30th October 2020. Kose released its 2QFY21 results last Friday and results were underwhelming as expected.The main catalyst for our long/short trade idea was the quarterly earnings. Part one of the catalyst (Kose’s earnings) yielded 10.6% as Kose’s share price has underperformed Fancl by the same percentage since our previous insight. We believe Part two (Fancl’s earnings) could realise an extra 5-6% in market-neutral returns and therefore suggests investors wait until Fancl’s quarterly results on 4th November 2020 before closing the trade.

Long Fancl/Short Kose: Kose’s Q2 Results As Expected, Now Waiting For Fancl to Come Through