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

Thematic (Sector/Industry)

<ul>
<li>There are signs that a base has been building in Real Estate allocations, and that sentiment is starting to stabilise.</li>
<li>Average weights in the Real Estate sector ticked higher by 0.25% and 5.43% of managers moved to overweight, closing the net underweight by 0.22%.</li>
<li>Central Pattana Pub (CPN TB), China Resources Mixc Lifestyle Services (1209 HK) and Capitaland (CAPL SP) were beneficiaries of recent inflows</li>
</ul>


There are signs that a base has been building in Real Estate allocations, and that sentiment is starting to stabilise.
Average weights in the Real Estate sector ticked higher by 0.25% and 5.43% of managers moved to overweight, closing the net underweight by 0.22%.
Central Pattana Pub (CPN TB), China Resources Mixc Lifestyle Services (1209 HK) and Capitaland (CAPL SP) were beneficiaries of recent inflows


Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> shares have fallen 46% since 31 March v a 52% decline for <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> with little daylight between the two since August</li>
<li>That reflects fading influence from Vision Fund which is shed $12bn in value Q4 to date and c. $30bn this fiscal year.</li>
<li>The discount remains in the 50% range as tailwinds from the share buyback depend on a successful IPO of ARM, where the magnitude and timing remain uncertain</li>
</ul>



Softbank Group (9984 JP) shares have fallen 46% since 31 March v a 52% decline for Alibaba Group (9988 HK) with little daylight between the two since August
That reflects fading influence from Vision Fund which is shed $12bn in value Q4 to date and c. $30bn this fiscal year.
The discount remains in the 50% range as tailwinds from the share buyback depend on a successful IPO of ARM, where the magnitude and timing remain uncertain


Softbank Group - Alibaba Remains the Key Share Price Driver as VF Diversification Stalls

Forensic Analyst

Jason Yap, CFA

Forensic Accounting

<ul>
<li>On 16 December 2021, KE Holdings Inc (BEKE US) was target of shortseller Muddy Water's shortsell report, which alleged "significant fraud".  BEKE has since issued a rebuttal. </li>
<li>As shortsell attacks increase in recent years, investors with affected portfolio companies need to find a way to swiftly evaluate and react to shortsell report risks. </li>
<li>In this Insight, we provide a 6 point checklist that investors could use to evaluate such risks and make capital allocation decisions in respect of its portfolio company</li>
</ul>


On 16 December 2021, KE Holdings Inc (BEKE US) was target of shortseller Muddy Water's shortsell report, which alleged "significant fraud".  BEKE has since issued a rebuttal. 
As shortsell attacks increase in recent years, investors with affected portfolio companies need to find a way to swiftly evaluate and react to shortsell report risks. 
In this Insight, we provide a 6 point checklist that investors could use to evaluate such risks and make capital allocation decisions in respect of its portfolio company


KE Holdings (BEKE US)'s Shortsell Report and Rebuttal - Key Takeaways

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>Tencent has received regulatory approval to resume regular updates in the app stores. Tencent was asked to get approval for all of its new apps and updates from the government.</li>
<li>While this suggests that the regulatory pressure may be easing, Tencent has got into more troubles with a young star worker committing suicide at work.</li>
<li>As we highlighted in our previous insights, the value of Tencent’s investments in other entities is deteriorating with more regulatory pressures. KE Holdings has been targeted by short sellers.</li>
</ul>


Tencent has received regulatory approval to resume regular updates in the app stores. Tencent was asked to get approval for all of its new apps and updates from the government.
While this suggests that the regulatory pressure may be easing, Tencent has got into more troubles with a young star worker committing suicide at work.
As we highlighted in our previous insights, the value of Tencent’s investments in other entities is deteriorating with more regulatory pressures. KE Holdings has been targeted by short sellers.


Tencent Receives Approval for App Updates but Faces New Hurdles

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<ul>
<li>
Muddy Waters and Beike: Tencent Holdings (700.HK) [Tencent] must deal with an allegation of “significant” fraud by short seller from Muddy Waters at a large investment: KE Holdings (BEKE.US) [Beike];</li>
<li>
Value At Risk: Tencent owns 11% of Beike’s outstanding shares, having a market value of USD 1.8 bn; and</li>
<li>
Fundamental and Regulatory Challenges Remain:Tencent still has numerous challenges: weaker revenues in its core business, mainland China’s clampdown on gaming/internet companies, and the reining-in of Fintech businesses.</li>
</ul>



Muddy Waters and Beike: Tencent Holdings (700.HK) [Tencent] must deal with an allegation of “significant” fraud by short seller from Muddy Waters at a large investment: KE Holdings (BEKE.US) [Beike];

Value At Risk: Tencent owns 11% of Beike’s outstanding shares, having a market value of USD 1.8 bn; and

Fundamental and Regulatory Challenges Remain:Tencent still has numerous challenges: weaker revenues in its core business, mainland China’s clampdown on gaming/internet companies, and the reining-in of Fintech businesses.


China

KE Holdings Inc. operates as an integrated online and offline platform for housing transactions and services. The Company offers existing and new home sales, home rentals, home renovation, real estate financial solutions, and other services. KE Holdings conducts businesses in China.

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KE Holdings (BEKE US)

Asia Real Estate: Early Stage Recovery

There are signs that a base has been building in Real Estate allocations, and that sentiment is starting to stabilise among active Asia Ex-Japan...

Steven Holden