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

TOPIX Inclusion (4765 JP): Morningstar Japan

Quiddity Advisors

Event-Driven

Then-JASDAQ-listed online financial information provider <a href="https://www.smartkarma.com/entities/morningstar-japan-kk" target="_blank" data-smartkarma-citation="entities:10386:1" rel="noopener">Morningstar Japan Kk (4765 JP)</a> announced (<a href="https://www.morningstar.co.jp/company/release/pdf/prs200929_02.pdf" target="_blank" rel="noopener">J-only</a>) on 29 September they had received approval to move to the Tokyo Stock Exchange as of 19th October 2020 and they expected the move to take them to the TSE First Section which meant a TOPIX inclusion. At the same time, they announced a combination equity offering which raised some new equity capital for the company, and allowed Morningstar Inc and SBI Global Asset Management to sell down their stakes somewhat. The shares fell which meant that it appears that neither the domestic additional tranche of 1.081mm shares or the overallotment were executed. However, that means that the net overhang from the offering is somewhat reduced because those who sold shares early to the stabilization syndicate effectively filled the orders of those who bought the greenshoe as presented. That Offering was priced at a ¥20 discount against the close of ¥482 and investors bought at ¥462/share.  <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/173/733/original/Screenshot%202020-11-24%20at%209.54.14%20PM.png?1606226722" class="editor-image img-responsive" data-smartkarma-image-id="173733"></figure></section>Tuesday 24 November was the only the fifth day in the past 32 trading days where the shares traded above the pre-offering price of ¥482/share. Volume was heavy. This sets up an interesting/odd TOPIX inclusion on Friday.

Then-JASDAQ-listed online financial information provider Morningstar Japan Kk (4765 JP) announced (J-only) on 29 September they had received approval to move to the Tokyo Stock Exchange as of 19th October 2020 and they expected the move to take them to the TSE First Section which meant a TOPIX inclusion. At the same time, they announced a combination equity offering which raised some new equity capital for the company, and allowed Morningstar Inc and SBI Global Asset Management to sell down their stakes somewhat. The shares fell which meant that it appears that neither the domestic additional tranche of 1.081mm shares or the overallotment were executed. However, that means that the net overhang from the offering is somewhat reduced because those who sold shares early to the stabilization syndicate effectively filled the orders of those who bought the greenshoe as presented. That Offering was priced at a ¥20 discount against the close of ¥482 and investors bought at ¥462/share.  Tuesday 24 November was the only the fifth day in the past 32 trading days where the shares traded above the pre-offering price of ¥482/share. Volume was heavy. This sets up an interesting/odd TOPIX inclusion on Friday.

Morningstar Japan (4765) TOPIX Inclusion - A Big Buy Against a Big Overhang

Morningstar Japan KK

Morningstar Japan (4765) TOPIX Inclusion - A Big Buy Against a Big Overhang