Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong Alpha portfolio returned -2.89% in November versus +1.72% for its benchmark index. The HK Alpha portfolio has outperformed Hong Kong indexes by 33% to 45% since inception.</li>
<li>The portfolio continues to generate 57% of its returns from alpha (idiosyncratic returns) while maintaining a Sharpe ratio of 2.19 YTD.</li>
<li>We have sold positions in the materials and industrials sectors and added positions in telecom, gold, and insurance industries at the end of November.</li>
</ul>


The Hong Kong Alpha portfolio returned -2.89% in November versus +1.72% for its benchmark index. The HK Alpha portfolio has outperformed Hong Kong indexes by 33% to 45% since inception.
The portfolio continues to generate 57% of its returns from alpha (idiosyncratic returns) while maintaining a Sharpe ratio of 2.19 YTD.
We have sold positions in the materials and industrials sectors and added positions in telecom, gold, and insurance industries at the end of November.


HONG KONG ALPHA PORTFOLIO: (November 2025)

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> rights offering caused some upset amongst investors. They got dilution where they did not need it, and de-leveraging from a REIT wanting to invest.</li>
<li>The units fell in price, then fell some more. Then the rights started trading.</li>
<li>Last week in <a href="https://www.smartkarma.com/insights/link-reit-823-nil-paid-rights-start-trading-tomorrow-the-trades" target="_blank" data-smartkarma-citation="insights:97326" rel="noopener">Link REIT (823) - Nil Paid Rights Start Trading Tomorrow - The Trades</a> I said strategy was to be long by Tuesday or Wednesday. It's Wednesday.</li>
</ul>


The Link REIT (823 HK) rights offering caused some upset amongst investors. They got dilution where they did not need it, and de-leveraging from a REIT wanting to invest.
The units fell in price, then fell some more. Then the rights started trading.
Last week in Link REIT (823) - Nil Paid Rights Start Trading Tomorrow - The Trades I said strategy was to be long by Tuesday or Wednesday. It's Wednesday.


Link REIT (823) - Anchors Aweigh! Fair Weather Sailing Ahead

<ul>
<li>After being halted this morning before the start of trade, post-close, <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> announced a fully-underwritten <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0210/2023021000480.pdf" target="_blank" rel="noopener">Rights Offering</a>. </li>
<li>The Rights Offering intends to raise HK$18.8bn issuing 1 Right for every 5 Shares held, at a subscription price of HK$44.20, a 26% discount to TERP. </li>
<li>This will take an already under-levered REIT and add more capital to it. And there is going to be selling pressure at some point.</li>
</ul>


After being halted this morning before the start of trade, post-close, Link REIT (823 HK) announced a fully-underwritten Rights Offering. 
The Rights Offering intends to raise HK$18.8bn issuing 1 Right for every 5 Shares held, at a subscription price of HK$44.20, a 26% discount to TERP. 
This will take an already under-levered REIT and add more capital to it. And there is going to be selling pressure at some point.


Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

Equity Bottom-Up

<ul>
<li>The largest REIT in Asia, with enough liquidity for most funds. Has a great set of neighborhood malls across Hong Kong enjoying recurring income from food &amp; beverage, restaurants, etc</li>
<li>Suffered during the COVID-19 pandemic but DPU has started growing again. Rights issue a misstep but the leverage is now acceptable. New Blackrock CIO bodes well for M&amp;A. </li>
<li>REIT trades at 7% yield vs 4% historically. Essentially an interest rate bet. Will probably be included in the Stock Connect program soon, expect an announcement on 19 April. </li>
</ul>


The largest REIT in Asia, with enough liquidity for most funds. Has a great set of neighborhood malls across Hong Kong enjoying recurring income from food &amp; beverage, restaurants, etc
Suffered during the COVID-19 pandemic but DPU has started growing again. Rights issue a misstep but the leverage is now acceptable. New Blackrock CIO bodes well for M&amp;A. 
REIT trades at 7% yield vs 4% historically. Essentially an interest rate bet. Will probably be included in the Stock Connect program soon, expect an announcement on 19 April. 


Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

<ul>
<li>Link REIT, as the largest REIT in Asia, owns a well diversified portfolio which provides visibility and certainty to its future growth</li>
<li>Given the stable fundamentals in Hong Kong, we think the REIT is over-penalized by the market, which presents an attractive entry point</li>
<li>Valuation is not demanding, we think it is a good opportunity for long-term investor</li>
</ul>


Link REIT, as the largest REIT in Asia, owns a well diversified portfolio which provides visibility and certainty to its future growth
Given the stable fundamentals in Hong Kong, we think the REIT is over-penalized by the market, which presents an attractive entry point
Valuation is not demanding, we think it is a good opportunity for long-term investor


Seeking Stability and Certainty in a World of Chaos: Link REIT

Hong Kong

Link REIT is a real estate investment trust in Hong Kong. The Trust owns and operates shopping centers, parking space facilities and real estate retail space.

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Link REIT (823 HK)

HONG KONG ALPHA PORTFOLIO: (November 2025)

We made small changes to the HK Alpha portfolio mid-month. At the close on 12/12 we sold all of First Pacific (142 HK) and added 2% to our...

David Mudd

Link REIT (823) - Anchors Aweigh! Fair Weather Sailing Ahead

LINK REIT Rights trading ends soon. That's an end to obvious overhang. There may be a bit more when units are delivered in a few weeks. In the...

Travis Lundy

Big Link REIT (823 HK) Rights Offering

Link REIT (823 HK) is doing a Rights Offering. The Rights Offering is to raise HK$18.5bn or so (after fees). The Offering is for 425mm shares which...

Travis Lundy

Link REIT (823 HK)

Asia's largest REIT, with strong liquidity and neighborhood malls in Hong Kong, is recovering post-COVID. 7% dividend yield plus gradual DPU...

Asian Century Stocks

Seeking Stability and Certainty in a World of Chaos: Link REIT

To seek stability in today's uncertain world, we think Link REIT provides good stability and visibility to future growth. The fundamental is...

Jacob Cheng

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HONG KONG ALPHA PORTFOLIO: (November 2025)

We made small changes to the HK Alpha portfolio mid-month. At the close on 12/12 we sold all of First Pacific (142 HK) and added 2% to our...

David Mudd

Link REIT (823) - Anchors Aweigh! Fair Weather Sailing Ahead

LINK REIT Rights trading ends soon. That's an end to obvious overhang. There may be a bit more when units are delivered in a few weeks. In the...

Travis Lundy

Big Link REIT (823 HK) Rights Offering

Link REIT (823 HK) is doing a Rights Offering. The Rights Offering is to raise HK$18.5bn or so (after fees). The Offering is for 425mm shares which...

Travis Lundy

Link REIT (823 HK)

​Asia's largest REIT, with strong liquidity and neighborhood malls in Hong Kong, is recovering post-COVID. 7% dividend yield plus gradual DPU...

Asian Century Stocks

Seeking Stability and Certainty in a World of Chaos: Link REIT

To seek stability in today's uncertain world, we think Link REIT provides good stability and visibility to future growth. The fundamental is...

Jacob Cheng

Asia's largest REIT, with strong liquidity and neighborhood malls in Hong Kong, is recovering post-COVID. 7% dividend yield plus gradual DPU...