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

HomeCo Daily Needs REIT / Index Rebalance

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<a href="https://www.smartkarma.com/entities/homeco-daily-needs-reit" target="_blank" data-smartkarma-citation="entities:33526:1" rel="noopener">HomeCo Daily Needs REIT (HDN AU)</a> will replace <a href="https://www.smartkarma.com/entities/cimic-group-ltd" target="_blank" data-smartkarma-citation="entities:20030:1" rel="noopener">CIMIC Group Ltd (CIM AU)</a> in the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> at the close of trading on 11 April.</li>
<li>The change has come earlier than expected as Hochtief hold nearly 90% of CIMIC. Positioning on HDN could be light- the stock could rally over the next couple of days.</li>
<li>There could be another ad hoc change prior to the June rebalance and then there will be more changes at the regular rebalance in June.</li>
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HomeCo Daily Needs REIT (HDN AU) will replace CIMIC Group Ltd (CIM AU) in the S&amp;P/ASX 200 (AS51 INDEX) at the close of trading on 11 April.
The change has come earlier than expected as Hochtief hold nearly 90% of CIMIC. Positioning on HDN could be light- the stock could rally over the next couple of days.
There could be another ad hoc change prior to the June rebalance and then there will be more changes at the regular rebalance in June.


ASX200 Index Rebalance: HomeCo Daily Needs REIT (HDN) Replaces CIMIC; More Changes in May & June

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

For our next Smartkarma Webinar, we have the pleasure of welcoming back Insight Provider <a href="https://www.smartkarma.com/profiles/jesus-rodriguez-aguilar" target="_blank" data-smartkarma-citation="accounts:5842" rel="noopener">Jesus Rodriguez Aguilar</a> to go over ideas in European Event-Driven. Jesus will examine offers that target FTSE 250 companies (particularly in healthcare and financial services); the real estate sector in Central and Eastern Europe; and special situations in European share classes and holding companies.
<h3>The webinar was hosted on Wednesday, 16 June 2021, 17:00 SGT/HKT.<a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=89974520966" target="_blank" rel="noopener"></a>
</h3>
Watch the session here:
<iframe src="https://www.youtube.com/embed/V5Kk8nkuLA8" width="560" height="315" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe>Or subscribe to our podcast feed and listen on the go:
<iframe src="https://open.spotify.com/embed/episode/34F1xaRo0opzAuBgwai2wy?utm_source=generator" width="100%" height="232" style="border-radius: 12px;" frameborder="0" allowfullscreen="allowfullscreen" allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture"></iframe>
Jesus Rodriguez Aguilar is an Event-Driven Analyst looking across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations.

For our next Smartkarma Webinar, we have the pleasure of welcoming back Insight Provider Jesus Rodriguez Aguilar to go over ideas in European Event-Driven. Jesus will examine offers that target FTSE 250 companies (particularly in healthcare and financial services); the real estate sector in Central and Eastern Europe; and special situations in European share classes and holding companies.
The webinar was hosted on Wednesday, 16 June 2021, 17:00 SGT/HKT.

Watch the session here:
Or subscribe to our podcast feed and listen on the go:

Jesus Rodriguez Aguilar is an Event-Driven Analyst looking across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations.

Smartkarma Webinar | European Event-Driven: Top Ideas

European Event-Driven Analyst

Jesus Rodriguez Aguilar

New York-based KKR &amp; Co. unit London-based Aqueduct Bidco Limited has agreed to acquire London-based <a href="https://www.smartkarma.com/entities/john-laing-group-plc" target="_blank" data-smartkarma-citation="entities:22016:1" rel="noopener">John Laing (JLG LN)</a> for 403p in cash, a 27% premium to the closing price on 5 May, the day before it announced that it was in discussions with KKR.
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For an implied equity value of £1,990.3 mn and an implied EV of £2,126.3 mn.
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This represents 1.6x Fwd P/BV.
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John Laing Group plc invests in greenfield infrastructure and then actively manages its investments in projects. KKR has agreed to partner with Equitix, an infrastructure investor, to jointly own John Laing's existing portfolio. Once the acquisition is completed, Equitix will acquire 50% of John Laing's assets though they will still be managed by the original team.
John Laing has an attractive, established portfolio of infrastructure assets and a platform with significant expertise and growth potential. Under KKR's ownership, John Laing could access KKR's available funding, in which could be a transformational deal.  KKR is planning to hold on to John Laing.
John Laing is another FTSE 250 constituent to receive a bid since the beginning of 2021.
Fair value is 313.6p vs a NAV of 320p at YE 2020, before dividends paid, and vs an offer price of 403p. On this basis, the offer price is fair, in my view.
Gross spread is 0.25%, c. 1.5% annualised, not terribly exciting, in my view, but considering the deal is highly likely to close, I would be long JLG LN and would take advantage of any bump to build a position.
As economies pull out of the Covid-19 crisis, construction and engineering M&amp;A industry is reviving, driven mainly by private equity buyouts in the infrastructure segment.

New York-based KKR &amp; Co. unit London-based Aqueduct Bidco Limited has agreed to acquire London-based John Laing (JLG LN) for 403p in cash, a 27% premium to the closing price on 5 May, the day before it announced that it was in discussions with KKR.


For an implied equity value of £1,990.3 mn and an implied EV of £2,126.3 mn.


This represents 1.6x Fwd P/BV.


John Laing Group plc invests in greenfield infrastructure and then actively manages its investments in projects. KKR has agreed to partner with Equitix, an infrastructure investor, to jointly own John Laing's existing portfolio. Once the acquisition is completed, Equitix will acquire 50% of John Laing's assets though they will still be managed by the original team.
John Laing has an attractive, established portfolio of infrastructure assets and a platform with significant expertise and growth potential. Under KKR's ownership, John Laing could access KKR's available funding, in which could be a transformational deal.  KKR is planning to hold on to John Laing.
John Laing is another FTSE 250 constituent to receive a bid since the beginning of 2021.
Fair value is 313.6p vs a NAV of 320p at YE 2020, before dividends paid, and vs an offer price of 403p. On this basis, the offer price is fair, in my view.
Gross spread is 0.25%, c. 1.5% annualised, not terribly exciting, in my view, but considering the deal is highly likely to close, I would be long JLG LN and would take advantage of any bump to build a position.
As economies pull out of the Covid-19 crisis, construction and engineering M&amp;A industry is reviving, driven mainly by private equity buyouts in the infrastructure segment.

United Kingdom

John Laing Group plc originates and invests in public sector infrastructure projects. The Company manages major transportation, social and environmental infrastructure, and renewable energy projects, as well as provides investment advisory and asset management services. John Laing Group serves customers worldwide.

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John Laing (JLG LN)

ASX200 Index Rebalance: HomeCo Daily Needs REIT (HDN) Replaces CIMIC; More Changes in May & June

HDN AU will replace CIM AU in the ASX200 at the close on 11 April. LKE AU could replace CWN AU in May. Then there could be another 4 changes to the...

Brian Freitas

Smartkarma Webinar | European Event-Driven: Top Ideas

On 16 June, 5pm SGT, join us and Jesus Rodriguez Aguilar to go over top ideas in European Event-Driven, including offers that target FTSE 250...

Smartkarma Research

KKR/John Laing: Trading Tight to Terms

Offer price is fair, in my view. Gross spread is 0.25%, c. 1.5% annualised, not terribly exciting, but the deal is highly likely to close. Long...

Jesus Rodriguez Aguilar

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