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>This is a special one-time report on Hanesbrands Inc, a company that is internationally recognized for its Hanes underwear and Champion sportswear and has recently garnered the attention of the New York-based hedge fund, Barington Capital Group LP.</li><li>With its acquisition of a stake in Hanesbrands, which is slightly below 1%, Barington has initiated active dialogues with the company's board and management.</li><li>At the heart of their concerns is Hanesbrands' subpar performance when placed side by side with its industry competitors and the wider market.</li></ul>

This is a special one-time report on Hanesbrands Inc, a company that is internationally recognized for its Hanes underwear and Champion sportswear and has recently garnered the attention of the New York-based hedge fund, Barington Capital Group LP.With its acquisition of a stake in Hanesbrands, which is slightly below 1%, Barington has initiated active dialogues with the company's board and management.At the heart of their concerns is Hanesbrands' subpar performance when placed side by side with its industry competitors and the wider market.

Activist Investor Stirs the Pot: Is Hanesbrands on the Brink of a Comeback? – Key Drivers

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>S&amp;P DJI Global Indices on Friday announced the changes to the S&amp;P500, S&amp;P Midcap 400, and S&amp;P 600 to be implement at the close on 17 December. </li>
<li>There were no surprises and the whole exercise is one of rearranging the deckchairs. Stocks move up an index, or down an index, but nothing moves out of the three.</li>
<li>The proprietary S&amp;P data suggests little opportunity, but empirical data suggests otherwise, and as in most cases, the interesting trades are the smaller ones.</li>
</ul>


S&amp;P DJI Global Indices on Friday announced the changes to the S&amp;P500, S&amp;P Midcap 400, and S&amp;P 600 to be implement at the close on 17 December. 
There were no surprises and the whole exercise is one of rearranging the deckchairs. Stocks move up an index, or down an index, but nothing moves out of the three.
The proprietary S&amp;P data suggests little opportunity, but empirical data suggests otherwise, and as in most cases, the interesting trades are the smaller ones.


S&P500 Rebalance for December 2021 - Rearranging the Deckchairs

<ul>
<li>The S&amp;P500 rebalance traded with appropriate-to-expectations volumes, but the path from announcement to actual event was somewhat surprising.</li>
<li>Historically, DELETEs underperform peers and index from announcement to event date, including an initial jump weaker. This time they saw initial strength, but fell hard on the last day.</li>
<li>"The trade" from here, statistically speaking, would be to buy the S&amp;P500 DELETEs (<a href="https://www.smartkarma.com/entities/leggett-platt-inc" target="_blank" data-smartkarma-citation="entities:15843:1" rel="noopener">Leggett &amp; Platt (LEG US)</a>, <a href="https://www.smartkarma.com/entities/hanesbrands-inc" target="_blank" data-smartkarma-citation="entities:13641:1" rel="noopener">Hanesbrands Inc (HBI US)</a>, and <a href="https://www.smartkarma.com/entities/western-union-co" target="_blank" data-smartkarma-citation="entities:16761:1" rel="noopener">Western Union Co (WU US)</a>) against index.</li>
</ul>


The S&amp;P500 rebalance traded with appropriate-to-expectations volumes, but the path from announcement to actual event was somewhat surprising.
Historically, DELETEs underperform peers and index from announcement to event date, including an initial jump weaker. This time they saw initial strength, but fell hard on the last day.
"The trade" from here, statistically speaking, would be to buy the S&amp;P500 DELETEs (Leggett &amp; Platt (LEG US), Hanesbrands Inc (HBI US), and Western Union Co (WU US)) against index.


S&P500 Rebalance Recap - Strange Path Ends As Expected.

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Factset Research Systems Inc / Event-Driven

<ul>
<li>There are 3 stocks migrating from the S&amp;P500 to the S&amp;P400 and vice versa and another 3 stocks migrating from the S&amp;P600 to the S&amp;P400 and vice versa.</li>
<li>The impact of changes in the number of index shares for quite a few index constituents and the funding trade take the one-way trade size to US$18.5bn.</li>
<li>There appear to be pre-positions on some of the stocks. While the flow is large on many stocks, there are only a few that have over 2 days of ADV.</li>
</ul>


There are 3 stocks migrating from the S&amp;P500 to the S&amp;P400 and vice versa and another 3 stocks migrating from the S&amp;P600 to the S&amp;P400 and vice versa.
The impact of changes in the number of index shares for quite a few index constituents and the funding trade take the one-way trade size to US$18.5bn.
There appear to be pre-positions on some of the stocks. While the flow is large on many stocks, there are only a few that have over 2 days of ADV.


S&P500 Index Rebalance: Migrations Across the Indices

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

We are beginning to see early signs of rotations back into more risk-on areas of the equity market -- a bullish sign for the broad market. Short-term outperformance and constructive consolidation/bottoming patterns are evident within biotech (IBB, XBI), small- and micro-caps (IWM, IWC), and emerging markets (EEM). This only adds to our positive outlook for the weeks and months ahead; continue to buy pullbacks.

We are beginning to see early signs of rotations back into more risk-on areas of the equity market -- a bullish sign for the broad market. Short-term outperformance and constructive consolidation/bottoming patterns are evident within biotech (IBB, XBI), small- and micro-caps (IWM, IWC), and emerging markets (EEM). This only adds to our positive outlook for the weeks and months ahead; continue to buy pullbacks.

U.S. Equity Strategy: Risk-On Rotations Vs. Weaker Seasonality; Russell 2000, Biotech, EM Improving

United States

Hanesbrands, Inc. manufactures men's, women's, and children's clothing.  The Company produces underwear, T-shirts, socks, sweatshirts, sleepwear, and shoes.

Hanesbrands Inc (HBI US)

Activist Investor Stirs the Pot: Is Hanesbrands on the Brink of a Comeback? – Key Drivers

This is a special one-time report on Hanesbrands Inc, a company that is internationally recognized for its Hanes underwear and Champion sportswear...

Baptista Research

S&P500 Rebalance for December 2021 - Rearranging the Deckchairs

The S&P announced its changes to the S&P500, S&P Midcap 400, and S&P Small 600 Indices. All names moving in and out of these indices are coming...

Travis Lundy

S&P500 Rebalance Recap - Strange Path Ends As Expected.

S&P500 Rebalance Recap - performance ends as expected with unexpected path to last day. Volumes largely as tracking amounts would predict. The next...

Travis Lundy

S&P500 Index Rebalance: Migrations Across the Indices

There are 3 migrations from the S&P400 to the S&P500 and vice versa and another 3 migrations from the S&P600 to the S&400 and vice versa. The one...

Brian Freitas

U.S. Equity Strategy: Risk-On Rotations Vs. Weaker Seasonality; Russell 2000, Biotech, EM Improving

We are seeing signs of rotations back into more risk-on areas of the equity market -- a bullish sign for the broad market. Add to biotech, small-...

Vermilion Research