Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>TOPIX Inclusions of <a href="https://www.smartkarma.com/entities/baudroie-inc" target="_blank" data-smartkarma-citation="entities:44459:1" rel="noopener">Baudroie (4413 JP)</a> and <a href="https://www.smartkarma.com/entities/jx-advanced-metals-corporation" target="_blank" data-smartkarma-citation="entities:44346:1" rel="noopener">JX Advanced Metals (5016 JP)</a> took place at the end of April 2025.</li>
<li>
<a href="https://www.smartkarma.com/entities/core-concept-technologies-inc" target="_blank" data-smartkarma-citation="entities:34323:1" rel="noopener">Core Concept Technologies Inc (4371 JP)</a> continues to be in our watchlist as a potential TOPIX Inclusion candidate.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
TOPIX Inclusions of Baudroie (4413 JP) and JX Advanced Metals (5016 JP) took place at the end of April 2025.

Core Concept Technologies Inc (4371 JP) continues to be in our watchlist as a potential TOPIX Inclusion candidate.


TOPIX Inclusions: Who Is Ready (May 2025)

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Event-Driven

<ul>
<li>In late November of 2024, <a href="https://www.smartkarma.com/entities/baudroie-inc" target="_blank" data-smartkarma-citation="entities:44459:1" rel="noopener">Baudroie (4413 JP)</a> announced it would try to move to TSE Prime and that day they announced a 2.76mm share secondary offering and a buyback.</li>
<li>The buyback was a bit less than a quarter of the offering. Fast forward 3mos and in early March the company announced it would move to Prime. Yesterday it did.</li>
<li>That puts the company in line for a TOPIX inclusion in end-April , and likely other index effects later. In the meantime, earnings and guidance are out ~10 April. </li>
</ul>


In late November of 2024, Baudroie (4413 JP) announced it would try to move to TSE Prime and that day they announced a 2.76mm share secondary offering and a buyback.
The buyback was a bit less than a quarter of the offering. Fast forward 3mos and in early March the company announced it would move to Prime. Yesterday it did.
That puts the company in line for a TOPIX inclusion in end-April , and likely other index effects later. In the meantime, earnings and guidance are out ~10 April. 


Baudroie (4413 JP) - Fast Growth, Prime Promotion, and TOPIX Inclusion

<ul>
<li>This year there are 10 Free Float Weight Changes for April. There are 20 Liquidity Factor Changes, 2 Inclusions, and 3 M&amp;A-related downweights. There are 90+ Share Count Change Downweights.</li>
<li>This is a bigger Big April Basket than normally comes around. And there are some big flows. All trades are 28 April at the close.</li>
<li>Total flow is ~US$2.1bn a side. 64 trades of &gt;2 days of ADV, and of those, 27 with &gt;US$10mm to trade (7 of US$50mm+). Top 20 in USD average 5dADV.</li>
</ul>


This year there are 10 Free Float Weight Changes for April. There are 20 Liquidity Factor Changes, 2 Inclusions, and 3 M&amp;A-related downweights. There are 90+ Share Count Change Downweights.
This is a bigger Big April Basket than normally comes around. And there are some big flows. All trades are 28 April at the close.
Total flow is ~US$2.1bn a side. 64 trades of &gt;2 days of ADV, and of those, 27 with &gt;US$10mm to trade (7 of US$50mm+). Top 20 in USD average 5dADV.


The End-April TOPIX Rebalance - US$2.1bn a Side

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>The TOPIX Inclusions of <a href="https://www.smartkarma.com/entities/baudroie-inc" target="_blank" data-smartkarma-citation="entities:44459:1" rel="noopener">Baudroie (4413 JP)</a> and <a href="https://www.smartkarma.com/entities/jx-advanced-metals-corporation" target="_blank" data-smartkarma-citation="entities:44346:1" rel="noopener">JX Advanced Metals (5016 JP)</a> are expected to take place at the end of April 2025.</li>
<li>Separately, the 0.75x TOPIX Liquidity Factor removal event will also take place at the same time. We expect one-way flows of US$514mn for this event.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
The TOPIX Inclusions of Baudroie (4413 JP) and JX Advanced Metals (5016 JP) are expected to take place at the end of April 2025.
Separately, the 0.75x TOPIX Liquidity Factor removal event will also take place at the same time. We expect one-way flows of US$514mn for this event.


TOPIX Inclusions: Who Is Ready (Apr 2025)

<ul>
<li>Every year it's the same trade. But sometimes it is not. This year it is Thursday and Friday. Or not.</li>
<li>The month-end and quarter-end bring big flows, or not, depending on how things have gone.</li>
<li>Over the past 10 years or so, the two-day return on the March trade is pretty good. This year? Well read on!</li>
</ul>


Every year it's the same trade. But sometimes it is not. This year it is Thursday and Friday. Or not.
The month-end and quarter-end bring big flows, or not, depending on how things have gone.
Over the past 10 years or so, the two-day return on the March trade is pretty good. This year? Well read on!


The Japan March-End Rebal and Dividend Trade

Japan

Baudroie,inc. offers information technology services. The Company provides information technology infrastructure development, cloud introduction supporting, network integration, security construction, and other services. Baudroie provides its services throughout Japan.

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Baudroie (4413 JP)

TOPIX Inclusions: Who Is Ready (May 2025)

Tokyo Metro performed exactly as we expected before and after the 0.75X TOPIX Liquidity Factor removal announcement in early-April 2025. The flow...

Janaghan Jeyakumar, CFA

Baudroie (4413 JP) - Fast Growth, Prime Promotion, and TOPIX Inclusion

baudroie is a small-cap IT infrastructure services consultancy. They hire only new grads, train them up, and the company is still growing fast...

Travis Lundy

The End-April TOPIX Rebalance - US$2.1bn a Side

There is US$2bn a side to trade on 28 April at the close for a variety of reasons. It is a big month of events with a long list of trades which...

Travis Lundy

TOPIX Inclusions: Who Is Ready (Apr 2025)

There are currently 91 names that satisfy all 5 key Segment Transfer requirements based on current data. Another 127 names can satisfy 4 out of 5...

Janaghan Jeyakumar, CFA

The Japan March-End Rebal and Dividend Trade

History shows (see Discussion Point) that "the right trade" is to be outright long TOPIX from today at the close to sell Friday (dividend ex-date)...

Travis Lundy

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