Alpha-Centric ESG Research

Kyle Rudden

U.S. President-Elect Joe Biden recently announced four "Day One" priorities for his administration. The first of those priorities is an aggressive seven-point COVID-19 response plan, the first point of which is COVID-19 testing. Testing is Biden's near-term focus, and testing stocks stand to gain.As noted in <a href="https://www.smartkarma.com/insights/biden-covid-19-response-plan-overview-of-its-inherent-investment-themes" target="_blank" data-smartkarma-citation="insights:45631" rel="noopener">Biden COVID-19 Response Plan: Overview of Its Inherent Investment Themes</a>, testing stocks represent the largest, most tangible, and nearest-term investment opportunity amongst the various themes inherent in Biden's COVID-19 plan (summarised in the Insight linked to above).Don't just back up the truck, however. The plan could be boon for testing stocks,  but it is harldy a "rising tide lifts all boats" scenario. It creates a window of upside for some of testing stocks, though not all, and it's a brief window replete with nuances and caveats. Selectivity and timing are key.This Insight presents an investment thesis for the COVID-19 testing stock theme, specifically vis-à-vis the details of the plan. It consists of two phases (time horizons), and two types of stocks:<ol>
<li>
Nearer-Term: Focus on diagnostic (versus antibody) testing stocks, especially those whose tests have fit best with Biden's "rapid deployment, rapid results" testing strategy. For example, rapid antigent tests, others with fast time-to-results, point-of-care and at-home collection, etc.</li>
<li>
Medium-Term: COVID-19 vaccine progress is a major catalyst for this theme. Vaccines will not end testing altogether (at least not soon), but as mass-vaccination becomes more reality than a dream, it would be wise to shift out of from diagnostic stocks into antibody testing stocks.</li>
</ol>

U.S. President-Elect Joe Biden recently announced four "Day One" priorities for his administration. The first of those priorities is an aggressive seven-point COVID-19 response plan, the first point of which is COVID-19 testing. Testing is Biden's near-term focus, and testing stocks stand to gain.As noted in Biden COVID-19 Response Plan: Overview of Its Inherent Investment Themes, testing stocks represent the largest, most tangible, and nearest-term investment opportunity amongst the various themes inherent in Biden's COVID-19 plan (summarised in the Insight linked to above).Don't just back up the truck, however. The plan could be boon for testing stocks,  but it is harldy a "rising tide lifts all boats" scenario. It creates a window of upside for some of testing stocks, though not all, and it's a brief window replete with nuances and caveats. Selectivity and timing are key.This Insight presents an investment thesis for the COVID-19 testing stock theme, specifically vis-à-vis the details of the plan. It consists of two phases (time horizons), and two types of stocks:

Nearer-Term: Focus on diagnostic (versus antibody) testing stocks, especially those whose tests have fit best with Biden's "rapid deployment, rapid results" testing strategy. For example, rapid antigent tests, others with fast time-to-results, point-of-care and at-home collection, etc.

Medium-Term: COVID-19 vaccine progress is a major catalyst for this theme. Vaccines will not end testing altogether (at least not soon), but as mass-vaccination becomes more reality than a dream, it would be wise to shift out of from diagnostic stocks into antibody testing stocks.


Biden COVID-19 Response Plan: Its Largest Near-Term Opportunity Is In Testing Stocks

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Thematic (Sector/Industry)

It is now official that we have a new short-selling restriction rule, which is effective as of March 11. For the existing regulations, we now have a 300% increase (down from 600%) compared with the previous 40 days average shorting volume for the KOSPI stocks and a 200% increase (down from 500%) for the KOSDAQ stocks. Besides, we have a new one. If stocks fall more than 20%, those whose short selling volume increased 200% (KOSPI) and 150% (KOSDAQ) will also be subject to the short-selling restriction. Lastly, the KRX extends the ban period from one trading day to ten trading days.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/122/311/original/2.png?1583852610" class="editor-image img-responsive" data-smartkarma-image-id="122311"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/122/312/original/1.png?1583852617" class="editor-image img-responsive" data-smartkarma-image-id="122312"></figure>

It is now official that we have a new short-selling restriction rule, which is effective as of March 11. For the existing regulations, we now have a 300% increase (down from 600%) compared with the previous 40 days average shorting volume for the KOSPI stocks and a 200% increase (down from 500%) for the KOSDAQ stocks. Besides, we have a new one. If stocks fall more than 20%, those whose short selling volume increased 200% (KOSPI) and 150% (KOSDAQ) will also be subject to the short-selling restriction. Lastly, the KRX extends the ban period from one trading day to ten trading days.

Full Details & Current Designation List - Short-Selling Restriction Rule Change in Korea

Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

Introduction to MedisetterI had the pleasure of interviewing Anirban Lahiri of Medisetter to discuss some of the opportunities present in Asia's healthcare industry. Medisetter is an international online medical travel search and bookings platform offering a one-stop-shop medical travel booking and planning service. Prospective patients can search and compare hospitals and clinics across different countries, receive price quotes, book appointments and also book accommodation, translators and…

Introduction to MedisetterI had the pleasure of interviewing Anirban Lahiri of Medisetter to discuss some of the opportunities present in Asia's healthcare industry. Medisetter is an international online medical travel search and bookings platform offering a one-stop-shop medical travel booking and planning service. Prospective patients can search and compare hospitals and clinics across different countries, receive price quotes, book appointments and also book accommodation, translators and…

MediSetter Interview: Insight on Opportunities in Asia's Healthcare Industry

SillaJen Biotherapeutics (established in 2006) is indeed a rare breed in Korean pharmaceutical world. It is not a generic drug maker. It is not a biosimilar maker either. It makes new biomedical products. A majority of Korea's pharmaceutical makers are still generic drug makers. The likes of Celltrion and Samsung Bioepis have emerged as a biosimilar maker. But they are still a few. Biomedical makers are even rarer. Hanmi Pharmaceutical is one of these rare breeds. Now, another biomedical maker…

SillaJen Biotherapeutics (established in 2006) is indeed a rare breed in Korean pharmaceutical world. It is not a generic drug maker. It is not a biosimilar maker either. It makes new biomedical products. A majority of Korea's pharmaceutical makers are still generic drug makers. The likes of Celltrion and Samsung Bioepis have emerged as a biosimilar maker. But they are still a few. Biomedical makers are even rarer. Hanmi Pharmaceutical is one of these rare breeds. Now, another biomedical maker…

SillaJen's December IPO: Valuation, Growth Expectation and IPO Timing

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>With 85% of the review period complete, we see 10 potential changes to the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> at the December rebalance.</li>
<li>There are a few stocks that are close adds/deletes on market cap and liquidity and could make it into the final list depending on price/volume over the next few weeks.</li>
<li>The potential adds have outperformed the potential deletes over the last month and pre-positioning could continue till the end of the review period.</li>
</ul>


With 85% of the review period complete, we see 10 potential changes to the KOSDAQ 150 Index (KOSDQ150 INDEX) at the December rebalance.
There are a few stocks that are close adds/deletes on market cap and liquidity and could make it into the final list depending on price/volume over the next few weeks.
The potential adds have outperformed the potential deletes over the last month and pre-positioning could continue till the end of the review period.


KOSDAQ150 Index Rebalance Preview: Moving in the Right Direction

South Korea

Access Bio Inc. develops, manufactures, and markets in-vitro diagnostic (IVD) tests.  The Company develops rapid diagnostic test (RDT) for Malaria and Pregnancy.

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Access Bio Inc (950130 KS)

Biden COVID-19 Response Plan: Its Largest Near-Term Opportunity Is In Testing Stocks

COVID-19 testing stocks represent the largest, most tangible, and nearest-term investment opportunity inherent in Biden's recently-announced COVID...

Kyle Rudden

Full Details & Current Designation List - Short-Selling Restriction Rule Change in Korea

It is now official that we have a new short-selling restriction rule, which is effective as of March 11. For the existing regulations, we now have...

Sanghyun Park

MediSetter Interview: Insight on Opportunities in Asia's Healthcare Industry

Introduction to MedisetterI had the pleasure of interviewing Anirban Lahiri of Medisetter to discuss some of the opportunities present in Asia's...

Nomadic Equity

SillaJen's December IPO: Valuation, Growth Expectation and IPO Timing

SillaJen Biotherapeutics (established in 2006) is indeed a rare breed in Korean pharmaceutical world. It is not a generic drug maker. It is not a...

Sanghyun Park

KOSDAQ150 Index Rebalance Preview: Moving in the Right Direction

There could be 10 changes to the KOSDAQ150 Index in December. There are a few stocks that are close adds/deletes. The potential adds have...

Brian Freitas

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