Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong Alpha portfolio has significantly outperformed the Hong Kong indexes in June and since inception. Outperformance range is 17% to 23% since inception.</li>
<li>At the end of June, we sold positions in the tech sector after substantial gains. The portfolio's exposure to the consumption sector was also trimmed, both discretionary and staples.</li>
<li>The portfolio added exposure to the metals refining sector and initiated positions in conglomerates <a href="https://www.smartkarma.com/entities/shanghai-industrial-holdings-limited" target="_blank" data-smartkarma-citation="entities:1447:1" rel="noopener">Shanghai Industrial Holdings (363 HK)</a> and <a href="https://www.smartkarma.com/entities/citic-ltd" target="_blank" data-smartkarma-citation="entities:20590:1" rel="noopener">Citic Ltd (267 HK)</a> .</li>
</ul>


The Hong Kong Alpha portfolio has significantly outperformed the Hong Kong indexes in June and since inception. Outperformance range is 17% to 23% since inception.
At the end of June, we sold positions in the tech sector after substantial gains. The portfolio's exposure to the consumption sector was also trimmed, both discretionary and staples.
The portfolio added exposure to the metals refining sector and initiated positions in conglomerates Shanghai Industrial Holdings (363 HK) and Citic Ltd (267 HK) .


Director, Head of Research, Smartkarma

Pranav Rao

Director, Head of Research

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

<ul>
<li>Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,000+ insights published in the past two weeks on Smartkarma</li>
<li>In this cut, we compare the top two Chinese ride hailing platforms, the recent momentum in Singapore IPOs and the flurry of pair trade ideas on Smartkarma</li>
<li>Want to dig deeper? Comment or message with the themes you’d like to see highlighted next</li>
</ul>


Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,000+ insights published in the past two weeks on Smartkarma
In this cut, we compare the top two Chinese ride hailing platforms, the recent momentum in Singapore IPOs and the flurry of pair trade ideas on Smartkarma
Want to dig deeper? Comment or message with the themes you’d like to see highlighted next


Curator's Cut: CC Vs DD, Singapore’s IPO Momentum & Pair Trade Ideas Galore

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

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.

<ul>
<li>Chinese ride-hailing platform CaoCao plans to issue 44.2m shares at the HKEx IPO at an indicative price of HK$41.9/share, and raise net proceeds of US$219m at a valuation of HK$28.9bn.</li>
<li>CaoCao’s earnings have seen strong growth during the last 2-3 years, however, much of this growth is driven through debt financing which has resulted in a highly geared balance sheet.</li>
<li>Our valuation analysis suggests that <a href="https://www.smartkarma.com/entities/caocao-inc" target="_blank" data-smartkarma-citation="entities:42803:1" rel="noopener">CaoCao (2643 HK)</a> 's IPO is overvalued at the indicative IPO price and we would recommend staying on the sidelines.</li>
</ul>


Chinese ride-hailing platform CaoCao plans to issue 44.2m shares at the HKEx IPO at an indicative price of HK$41.9/share, and raise net proceeds of US$219m at a valuation of HK$28.9bn.
CaoCao’s earnings have seen strong growth during the last 2-3 years, however, much of this growth is driven through debt financing which has resulted in a highly geared balance sheet.
Our valuation analysis suggests that CaoCao (2643 HK) 's IPO is overvalued at the indicative IPO price and we would recommend staying on the sidelines.


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/caocao-inc" target="_blank" data-smartkarma-citation="entities:42803:1" rel="noopener">CaoCao (2643 HK)</a> has launched its IPO to raise US$236 million at HK$41.94 per share. The shares will be listed on 25 June.</li>
<li>I previously discussed the IPO in <a href="https://www.smartkarma.com/insights/caocao-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:189909" rel="noopener">CaoCao IPO: The Bull Case</a> and <a href="https://www.smartkarma.com/insights/caocao-ipo-the-bear-case" target="_blank" data-smartkarma-citation="insights:190152" rel="noopener">CaoCao IPO: The Bear Case</a>. </li>
<li>In this note, I present my forecasts and discuss valuation. My analysis suggests that CaoCao is at best fairly valued at the offer price. Therefore, avoid the IPO.</li>
</ul>



CaoCao (2643 HK) has launched its IPO to raise US$236 million at HK$41.94 per share. The shares will be listed on 25 June.
I previously discussed the IPO in CaoCao IPO: The Bull Case and CaoCao IPO: The Bear Case. 
In this note, I present my forecasts and discuss valuation. My analysis suggests that CaoCao is at best fairly valued at the offer price. Therefore, avoid the IPO.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/caocao-inc" target="_blank" data-smartkarma-citation="entities:42803:1" rel="noopener">CaoCao Inc (1646553D CH)</a> is the second-largest ride-hailing player in China. It has filed its PHIP to raise US$200-300 million.</li>
<li>In <a href="https://www.smartkarma.com/insights/caocao-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:189909" rel="noopener">CaoCao IPO: The Bull Case</a>, I highlighted the key elements of the bull case. In this note, I outline the bear case.</li>
<li>The bear case rests on low net take rates, unfavourable trends of key cost items, expected losses in the current year and a stretched balance sheet.</li>
</ul>



CaoCao Inc (1646553D CH) is the second-largest ride-hailing player in China. It has filed its PHIP to raise US$200-300 million.
In CaoCao IPO: The Bull Case, I highlighted the key elements of the bull case. In this note, I outline the bear case.
The bear case rests on low net take rates, unfavourable trends of key cost items, expected losses in the current year and a stretched balance sheet.


China

DiDi Chuxing Inc operates passenger transportation platforms. The Company provides mobility solutions, cloud computing, and other application based services. DiDi Chuxing serves customers worldwide.

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DiDi Global (DIDIY US)

Hong Kong Alpha Portfolio (June 2025)

The Hong Kong Alpha portfolio has significantly outperformed the Hong Kong indexes in June and since inception. Outperformance range is 17% to 23%...

David Mudd

Curator's Cut: CC Vs DD, Singapore’s IPO Momentum & Pair Trade Ideas Galore

This Curator’s Cut issue highlights Chinese ride hailing players, Singapore's recent REIT IPO issuance, and the flurry of pair trade ideas on...

Pranav Rao

CaoCao IPO: Forecasts and Valuation

CaoCao will debut on he HKEx today offering 44.2m shares at a final IPO price of HK$41.9 per share. The HK offering is oversubscribed by 21.1x...

Shifara Samsudeen, FCMA, CGMA

CaoCao IPO (2643 HK): Valuation Insights

In this note, I present my forecasts and discuss valuation. My analysis suggests that CaoCao is at best fairly valued at the offer price....

Arun George

CaoCao IPO: The Bear Case

CaoCao is the second-largest ride-hailing player in China and is seeking to raise US$200-300 million. In this note, I discuss the key elements of...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hong Kong Alpha Portfolio (June 2025)

The Hong Kong Alpha portfolio has significantly outperformed the Hong Kong indexes in June and since inception. Outperformance range is 17% to 23%...

David Mudd

Curator's Cut: CC Vs DD, Singapore’s IPO Momentum & Pair Trade Ideas Galore

​This Curator’s Cut issue highlights Chinese ride hailing players, Singapore's recent REIT IPO issuance, and the flurry of pair trade ideas on...

Pranav Rao

CaoCao IPO: Forecasts and Valuation

CaoCao will debut on he HKEx today offering 44.2m shares at a final IPO price of HK$41.9 per share. The HK offering is oversubscribed by 21.1x...

Shifara Samsudeen, FCMA, CGMA

CaoCao IPO (2643 HK): Valuation Insights

In this note, I present my forecasts and discuss valuation. My analysis suggests that CaoCao is at best fairly valued at the offer price....

Arun George

CaoCao IPO: The Bear Case

CaoCao is the second-largest ride-hailing player in China and is seeking to raise US$200-300 million. In this note, I discuss the key elements of...

Arun George

This Curator’s Cut issue highlights Chinese ride hailing players, Singapore's recent REIT IPO issuance, and the flurry of pair trade ideas on...