Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Hong Kong Alpha portfolio gained 0.46 % in February resulting in a 2.99% underperformance to its benchmark. The portfolio has outperformed HK indexes by 53% to 75% since inception 10/1/24.</li>
<li>Hong Kong Alpha has generated 63% of its return from alpha and has a Sharpe ratio of 1.71 since inception. The portfolio's annualized mean excess return is 24%.</li>
<li>At the end of February, we reduced positions in the technology sector and added positions in the energy and building materials sectors.</li>
</ul>


Hong Kong Alpha portfolio gained 0.46 % in February resulting in a 2.99% underperformance to its benchmark. The portfolio has outperformed HK indexes by 53% to 75% since inception 10/1/24.
Hong Kong Alpha has generated 63% of its return from alpha and has a Sharpe ratio of 1.71 since inception. The portfolio's annualized mean excess return is 24%.
At the end of February, we reduced positions in the technology sector and added positions in the energy and building materials sectors.


HONG KONG ALPHA PORTFOLIO: (February 2026)

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.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Sep 25th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Zijin Gold Intl, Alibaba, CCB, Trip.Com, Meituan, BOC, Wuxi Apptec, Wanguo Gold Gp.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Sep 25th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Zijin Gold Intl, Alibaba, CCB, Trip.Com, Meituan, BOC, Wuxi Apptec, Wanguo Gold Gp.


HK Short Interest Weekly: Zijin Gold Intl, Alibaba, CCB, Trip.Com, Meituan, BOC, Wuxi Apptec

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Since 2013, the HSI has lost an average of 0.6% in March, with 2020 being the worst with a 9.7% decline due to the COVID-19 outbreak.</li>
<li>For the March down years, the average loss was 3.9%, similar to MTD (-4.6%). April, however, is generally strong, and aggressive investors can start building a position.</li>
<li>The top 10 worst months for HSI, since 2013, have averaged a return of -10.8%. If we align this March with the average, it will mean another 6.5% downside.  </li>
</ul>


Since 2013, the HSI has lost an average of 0.6% in March, with 2020 being the worst with a 9.7% decline due to the COVID-19 outbreak.
For the March down years, the average loss was 3.9%, similar to MTD (-4.6%). April, however, is generally strong, and aggressive investors can start building a position.
The top 10 worst months for HSI, since 2013, have averaged a return of -10.8%. If we align this March with the average, it will mean another 6.5% downside.  


HK Strategy: What Does March Look Like Historically?

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

<ul>
<li>TSMC, Tencent and Samsung remain dominant holdings, but are increasingly held as structural underweights as managers sell into strength to manage benchmark risk.</li>
<li>2025 saw sharp ownership increases in emerging leaders such as Xiaomi, CATL and Accton, while former consensus names like Meituan and Indonesian banks were heavily exited.</li>
<li>Across regions, new stock leadership is forming in MENA, LATAM and ASEAN as capital rotates away from long-standing EM favourites into a broader set of positions.</li>
</ul>


TSMC, Tencent and Samsung remain dominant holdings, but are increasingly held as structural underweights as managers sell into strength to manage benchmark risk.
2025 saw sharp ownership increases in emerging leaders such as Xiaomi, CATL and Accton, while former consensus names like Meituan and Indonesian banks were heavily exited.
Across regions, new stock leadership is forming in MENA, LATAM and ASEAN as capital rotates away from long-standing EM favourites into a broader set of positions.


EM Active Investors’ Stock Positioning Guide

<ul>
<li>We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Oct 2nd based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were HSBC (5 HK), Tencent (700 HK), Bidu (9888 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Bidu (9888 HK), Bilibili (9626 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Oct 2nd based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were HSBC (5 HK), Tencent (700 HK), Bidu (9888 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Bidu (9888 HK), Bilibili (9626 HK).


Hong Kong Buybacks Weekly (Oct 2nd): HSBC, Tencent, Bidu

Hong Kong

AIA Group is a Hong Kong-based multinational insurance and finance corporation, and the largest publicly traded life insurance group in the Asia-Pacific region. It offers a wide range of products including life, accident, and health insurance, savings plans, employee benefits, and wealth management services. The company was founded in 1919 and is headquartered in Central, Hong Kong.

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AIA Group (AAGIY US)

HONG KONG ALPHA PORTFOLIO: (February 2026)

The war, which launched at the beginning of the month, is now into its second week and its economic effects are being reflected in global markets....

David Mudd

HK Short Interest Weekly: Zijin Gold Intl, Alibaba, CCB, Trip.Com, Meituan, BOC, Wuxi Apptec

We analyzed the latest HK SFC report for aggregate short position as of Sep 25th and highlight short interest changes in Zijin Gold Intl (2259 HK),...

Ke Yan, CFA, FRM

HK Strategy: What Does March Look Like Historically?

Historically, the HSI lost an average of 0.6% in Mar, with 2020 being the worst due to COVID-19. However, Apr tends to be strong, making it a...

Osbert Tang, CFA

EM Active Investors’ Stock Positioning Guide

A detailed guide to stock positioning among the world’s largest active EM funds, highlighting dominant holdings, ownership trends, and the key...

Steven Holden

Hong Kong Buybacks Weekly (Oct 2nd): HSBC, Tencent, Bidu

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were HSBC (5 HK),...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HONG KONG ALPHA PORTFOLIO: (February 2026)

The war, which launched at the beginning of the month, is now into its second week and its economic effects are being reflected in global markets....

David Mudd

HK Short Interest Weekly: Zijin Gold Intl, Alibaba, CCB, Trip.Com, Meituan, BOC, Wuxi Apptec

We analyzed the latest HK SFC report for aggregate short position as of Sep 25th and highlight short interest changes in Zijin Gold Intl (2259 HK),...

Ke Yan, CFA, FRM

HK Strategy: What Does March Look Like Historically?

Historically, the ​HSI lost an average of 0.6% in Mar, with 2020 being the worst due to COVID-19. However, Apr tends to be strong, making it a...

Osbert Tang, CFA

EM Active Investors’ Stock Positioning Guide

A detailed guide to stock positioning among the world’s largest active EM funds, highlighting dominant holdings, ownership trends, and the key...

Steven Holden

Hong Kong Buybacks Weekly (Oct 2nd): HSBC, Tencent, Bidu

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were HSBC (5 HK),...

Ke Yan, CFA, FRM

Historically, the HSI lost an average of 0.6% in Mar, with 2020 being the worst due to COVID-19. However, Apr tends to be strong, making it a...