Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>HK Alpha portfolio gained 2.22% in September, outperforming its benchmark by 5.36%. Since inception, the portfolio has outperformed HK indexes by 66% to 93%. HK ALPHA is up 14.35% YTD.</li>
<li>The Sharpe ratio stands at 1.22, compared with a benchmark of 0.56 since inception. This higher Sharpe ratio is driven by excess alpha, which represents more than 50% of returns.</li>
<li>The portfolio gained in the healthcare and energy sectors in August, while exposure to materials and communication services dragged on performance.</li>
</ul>


HK Alpha portfolio gained 2.22% in September, outperforming its benchmark by 5.36%. Since inception, the portfolio has outperformed HK indexes by 66% to 93%. HK ALPHA is up 14.35% YTD.
The Sharpe ratio stands at 1.22, compared with a benchmark of 0.56 since inception. This higher Sharpe ratio is driven by excess alpha, which represents more than 50% of returns.
The portfolio gained in the healthcare and energy sectors in August, while exposure to materials and communication services dragged on performance.


HONG KONG ALPHA PORTFOLIO: (September 2026)

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Alibaba Group has found itself caught in a selloff that has little to do with a sudden collapse in its underlying business.</li><li>The company’s U.S.-listed shares had fallen roughly 27% year-to-date entering the October 2 session, while its Hong Kong-listed shares dropped about 2.1% on Friday as the Hang Seng Index sank 2.6%, marking its worst one-day performance in more than six months.</li><li>The immediate culprit was a sharp surge in U.S. Treasury yields, with the benchmark 10-year yield climbing from around 4.6% in late August to above 5.3% by the end of September, its highest level in 24 years.</li></ul>

Alibaba Group has found itself caught in a selloff that has little to do with a sudden collapse in its underlying business.The company’s U.S.-listed shares had fallen roughly 27% year-to-date entering the October 2 session, while its Hong Kong-listed shares dropped about 2.1% on Friday as the Hang Seng Index sank 2.6%, marking its worst one-day performance in more than six months.The immediate culprit was a sharp surge in U.S. Treasury yields, with the benchmark 10-year yield climbing from around 4.6% in late August to above 5.3% by the end of September, its highest level in 24 years.

Alibaba Is Down 27% Even As Cloud Growth Hits 45%—What Is The Market Missing?

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Thematic (Sector/Industry)

<ul>
<li>Anthropic launched Claude Haiku 5.5 at up to 90% lower prices, Reflection AI unveiled its Beam open-weight model, and OpenAI's annualized revenue was below recent estimates.</li>
<li>OpenAI rolled GPT-6 out across ChatGPT, AWS added Zhipu's GLM-5.3 to Bedrock, TSMC's third-quarter revenue rose 50.9% YoY and Samsung guided record operating profit.</li>
<li>DeepSeek neared USD 12bn of new funding, Moonshot closed at about USD 50bn, Firmus withdrew its ASX IPO and SpaceX sought about USD 40bn of debt for Nvidia chips.</li>
</ul>


Anthropic launched Claude Haiku 5.5 at up to 90% lower prices, Reflection AI unveiled its Beam open-weight model, and OpenAI's annualized revenue was below recent estimates.
OpenAI rolled GPT-6 out across ChatGPT, AWS added Zhipu's GLM-5.3 to Bedrock, TSMC's third-quarter revenue rose 50.9% YoY and Samsung guided record operating profit.
DeepSeek neared USD 12bn of new funding, Moonshot closed at about USD 50bn, Firmus withdrew its ASX IPO and SpaceX sought about USD 40bn of debt for Nvidia chips.


This Week in AI (Oct 4-10): Haiku 5.5's Throat-Cutting Prices; OpenAI Revenue Trails Expectation

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>With the US$ rate likely to trend higher over the next 12 months, the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index (HSI INDEX)</a> constituent stocks with high gearing will be exposed. </li>
<li>
<a href="https://www.smartkarma.com/entities/hong-kong-china-gas-co-ltd" target="_blank" data-smartkarma-citation="entities:375:1" rel="noopener">Hong Kong and China Gas (3 HK)</a> and <a href="https://www.smartkarma.com/entities/clp-holdings-limited" target="_blank" data-smartkarma-citation="entities:14433:1" rel="noopener">CLP (2 HK)</a> are on top of the list, given their leveraged balance sheet and relatively high proportion of floating-rate debt.</li>
<li>
<a href="https://www.smartkarma.com/entities/wharf-real-estate-investment-company-limited" target="_blank" data-smartkarma-citation="entities:26031:1" rel="noopener">Wharf Real Estate (1997 HK)</a>, <a href="https://www.smartkarma.com/entities/henderson-land-development-co-ltd" target="_blank" data-smartkarma-citation="entities:376:1" rel="noopener">Henderson Land Development (12 HK)</a>, and <a href="https://www.smartkarma.com/entities/sun-hung-kai-properties-limited" target="_blank" data-smartkarma-citation="entities:111:1" rel="noopener">Sun Hung Kai Properties (16 HK)</a> have lots of floating-rate debt, but their gearing levels are low.  </li>
</ul>


With the US$ rate likely to trend higher over the next 12 months, the Hang Seng Index (HSI INDEX) constituent stocks with high gearing will be exposed. 

Hong Kong and China Gas (3 HK) and CLP (2 HK) are on top of the list, given their leveraged balance sheet and relatively high proportion of floating-rate debt.

Wharf Real Estate (1997 HK), Henderson Land Development (12 HK), and Sun Hung Kai Properties (16 HK) have lots of floating-rate debt, but their gearing levels are low.  


HK Strategy: Rate Hike Exposure - Fixed & Floating Rate Debt Analysis

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

SHEIN Global Holdings / Equity Capital Markets

<ul>
<li>We spent the past week meeting ECM focused clients in Hong Kong.</li>
<li>Overall, IPO flow doesn’t appear to be showing any signs of slowing down with multiple investor teams being in expansion mode.</li>
<li>In this note, we talk about some of the feedback for the upcoming IPOs and placements.</li>
</ul>


We spent the past week meeting ECM focused clients in Hong Kong.
Overall, IPO flow doesn’t appear to be showing any signs of slowing down with multiple investor teams being in expansion mode.
In this note, we talk about some of the feedback for the upcoming IPOs and placements.


Aequitas: ECM Asia Takeaways from Hong Kong Investor Meetings- Innolight, Shein, A/H Listings, Gcash

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

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Alibaba (BABA US)

HONG KONG ALPHA PORTFOLIO: (September 2026)

We made mid-month changes in the portfolio yesterday. We sold 148, 6185, 3696, 3759, 669 and 2268. We added 322, 2319, 1579, 6186, 9633, 2688,...

David Mudd

Alibaba Is Down 27% Even As Cloud Growth Hits 45%—What Is The Market Missing?

Alibaba Group has found itself caught in a selloff that has little to do with a sudden collapse in its underlying business. The company’s...

Baptista Research

This Week in AI (Oct 4-10): Haiku 5.5's Throat-Cutting Prices; OpenAI Revenue Trails Expectation

This week in AI: Anthropic cut prices by up to 90% with Claude Haiku 5.5, OpenAI's annualized revenue reached about USD 50bn, and Moonshot closed...

Ke Yan, CFA, FRM

HK Strategy: Rate Hike Exposure - Fixed & Floating Rate Debt Analysis

With the US$ rate likely to trend higher over the next 12 months, the HSI constituent stocks with elevated gearing and floating-rate debt, like...

Osbert Tang, CFA

Aequitas: ECM Asia Takeaways from Hong Kong Investor Meetings- Innolight, Shein, A/H Listings, Gcash

We spent the past week meeting ECM focused clients in Hong Kong. This note contains some of the key takeaways from the upcoming listings.

Sumeet Singh

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