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

Historical TOPIX Inclusions:  What Flavor Performs Best?

Nippon Rietec's (1938) Gangbusters TOPIX Inclusion

TOPIX Inclusion: Retail Partners (8167 JP)

Quiddity Advisors

Event-Driven

<div><p>Yesterday after the close, <a href="https://www.smartkarma.com/entities/mixi-inc" target="_blank" data-smartkarma-citation="entities:602:1" rel="noopener">mixi Inc (2121 JP)</a> made an <a href="https://pdf.irpocket.com/C2121/QW2b/oEga/x8Ah.pdf" target="_blank" rel="noopener">announcement</a> that the company had received approval from the Tokyo Stock Exchange to move from the MOTHERS section, where it IPOed in 2006, to the First Section of the Tokyo Stock Exchange as of 23 June 2020. </p></div><div><p>TSE1 reassignment triggers inclusion into the TOPIX Index and the inclusion event should occur at the close of trading 30th July 2020.</p></div><div><p>mixi, Inc was founded in 1999 as a kind of social networking service, and since has developed or some net portals for jobs and other things, and any number of mobile telephone apps, has developed games such as Fight League, Monster Strike, and Monster Strike Stadium and runs sports, a sports team, e-sports, and government-regulated sports-betting services. The recent past has not been great for the company as in the past three years revenue has dropped nearly 50% and EBIT and Net Profit have dropped 80%. The share price has dropped 75% in that time.</p></div><div>
<p>mixi has always been quintessentially MOTHERS-ish. It has long been able to move to the TSE1, and indeed the guidelines of MOTHERS venue listing are that it "graduate" within ten years of listing on MOTHERS. mixi took 14 yrs.</p>
<p>And this announcement appears to be a surprise. </p>
<p>In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the trade.</p>
</div>

Yesterday after the close, mixi Inc (2121 JP) made an announcement that the company had received approval from the Tokyo Stock Exchange to move from the MOTHERS section, where it IPOed in 2006, to the First Section of the Tokyo Stock Exchange as of 23 June 2020. TSE1 reassignment triggers inclusion into the TOPIX Index and the inclusion event should occur at the close of trading 30th July 2020.mixi, Inc was founded in 1999 as a kind of social networking service, and since has developed or some net portals for jobs and other things, and any number of mobile telephone apps, has developed games such as Fight League, Monster Strike, and Monster Strike Stadium and runs sports, a sports team, e-sports, and government-regulated sports-betting services. The recent past has not been great for the company as in the past three years revenue has dropped nearly 50% and EBIT and Net Profit have dropped 80%. The share price has dropped 75% in that time.
mixi has always been quintessentially MOTHERS-ish. It has long been able to move to the TSE1, and indeed the guidelines of MOTHERS venue listing are that it "graduate" within ten years of listing on MOTHERS. mixi took 14 yrs.
And this announcement appears to be a surprise. 
In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the trade.


Mixi Inc

Mixi TOPIX Inclusion - Out of Left Field