Asia Long-Short PM/Analyst

Curtis Lehnert

Event-Driven

In my original insight on January 15, 2019 <a href="https://www.smartkarma.com/insights/trade-idea-amorepacific-002790-ks-stub-a-beautiful-opportunity" target="_blank" data-smartkarma-citation="insights:27111">TRADE IDEA: Amorepacific (002790 KS) Stub: A Beautiful Opportunity</a>, I proposed setting up a stub trade to profit from the mis-priced stub business of Amorepacific that was trading at its widest discount to NAV in at least three years. During the 65 calendar days that followed, <a href="https://www.smartkarma.com/entities/12179" target="_blank" data-smartkarma-citation="entities:12179:1">Amorepacific Group (002790 KS)</a> has gained 7.3% and the outperformed <a href="https://www.smartkarma.com/entities/20854" target="_blank" data-smartkarma-citation="entities:20854:1">Amorepacific Corp (090430 KS)</a> by 2.84%. The trade has reverted to average levels in a period of about two months and in this insight I will outline why I think the trade is over.
In this insight I will discuss:
<ul class="">
<li>Performance of ALL my recommended stub trades</li>
<li>a post-trade analysis on the Amorepacific stub</li>
</ul>

In my original insight on January 15, 2019 TRADE IDEA: Amorepacific (002790 KS) Stub: A Beautiful Opportunity, I proposed setting up a stub trade to profit from the mis-priced stub business of Amorepacific that was trading at its widest discount to NAV in at least three years. During the 65 calendar days that followed, Amorepacific Group (002790 KS) has gained 7.3% and the outperformed Amorepacific Corp (090430 KS) by 2.84%. The trade has reverted to average levels in a period of about two months and in this insight I will outline why I think the trade is over.
In this insight I will discuss:

Performance of ALL my recommended stub trades
a post-trade analysis on the Amorepacific stub


TRADE IDEA - Amorepacific Stub (002790 KS): Buyback Helped, Close the Trade

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

The Asia HY Trade Recommendations report for March includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Recommendations report for March includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - March 2019 - Lucror Analytics

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Last Week in Event SPACE: Chiyoda, Shin Etsu Chemical, GLOW, HNA, Hyosung, Wheelock

This week in StubWorld ...
<ul>
<li>
<a href="https://www.smartkarma.com/entities/52" target="_blank" data-smartkarma-citation="entities:52:1">Wheelock &amp; (20 HK) </a>is coming up "expensive", but it's <a href="https://www.smartkarma.com/entities/51" target="_blank" data-smartkarma-citation="entities:51:1">Wharf Holdings (4 HK)</a> which is <a href="https://www.smartkarma.com/entities/51" target="_blank" data-smartkarma-citation="entities:51:1"></a>under-performing after PRC property sales targets are lowered amid Beijing's cooling measures.</li>
</ul>
Preceding my comments on Wheelock and other stubs are the weekly setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.

This week in StubWorld ...


Wheelock &amp; (20 HK) is coming up "expensive", but it's Wharf Holdings (4 HK) which is under-performing after PRC property sales targets are lowered amid Beijing's cooling measures.

Preceding my comments on Wheelock and other stubs are the weekly setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.

StubWorld: Wharf Under Pressure As Cooling Measures Bite

In this month’s “In-Focus” section, we look at key developments in the global oil & gas markets in 2018 and consider the 2019 outlook. We also review recent performance and prospects for the O&G issuers under our coverage. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

   In this month’s “In-Focus” section, we look at key developments in the global oil & gas markets in 2018 and consider the 2019 outlook. We also review recent performance and prospects for the O&G issuers under our coverage.    The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Oil & Gas Overview - Lucror Analytics

Hong Kong

First Pacific Company Limited is an investment holding company with operations located in Asia-Pacific. The Company principally invests in consumer food products, infrastructure, natural resources, and telecommunications.

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First Pacific Co (142 HK)

TRADE IDEA - Amorepacific Stub (002790 KS): Buyback Helped, Close the Trade

In my original insight on January 15, 2019 TRADE IDEA: Amorepacific (002790 KS) Stub: A Beautiful Opportunity, I proposed setting up a stub trade...

Curtis Lehnert

Asia HY Trade Recommendations - March 2019 - Lucror Analytics

The Asia HY Trade Recommendations report for March includes a summary of our recommendations, as well as our high-conviction ideas. We also...

Lucror Analytics

Last Week in Event SPACE: Chiyoda, Shin Etsu Chemical, GLOW, HNA, Hyosung, Wheelock

Last Week in Event SPACE ... One interpretation on how Chiyoda Corp (6366 JP) may source additional loans and equity. Shin Etsu Chemical (4063...

David Blennerhassett

StubWorld: Wharf Under Pressure As Cooling Measures Bite

This week in StubWorld ... Wheelock & (20 HK) is coming up "expensive", but it's Wharf Holdings (4 HK) which is under-performing after PRC...

David Blennerhassett

Asia HY Monthly - Oil & Gas Overview - Lucror Analytics

In this month’s “In-Focus” section, we look at key developments in the global oil & gas markets in 2018 and consider the 2019 outlook. We...

Lucror Analytics

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