Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>In this insight, we take a look at the names leading the race to become ADDs/DELs for the STX Europe 600 and EUROSTX Indices for the June 2023 Rebalance.</li>
<li>I currently expect <a href="https://www.smartkarma.com/entities/credit-suisse-group-ag-f4b24f0c-c294-40b3-b491-759f0cb277e9" target="_blank" data-smartkarma-citation="entities:27915:1" rel="noopener">Credit Suisse (CSGN SW)</a> and <a href="https://www.smartkarma.com/entities/al-noor-hospitals-group-plc" target="_blank" data-smartkarma-citation="entities:21813:1" rel="noopener">Mediclinic International (MDC LN)</a> to be deleted in the next few trading days</li>
<li>Separately, there could be five ADDs and DELs during the regular review in June 2023.</li>
</ul>


In this insight, we take a look at the names leading the race to become ADDs/DELs for the STX Europe 600 and EUROSTX Indices for the June 2023 Rebalance.
I currently expect Credit Suisse (CSGN SW) and Mediclinic International (MDC LN) to be deleted in the next few trading days
Separately, there could be five ADDs and DELs during the regular review in June 2023.


Quiddity Leaderboard SE600 Jun 23: Credit Suisse Deletion Imminent; Multiple Changes in June

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

<ul>
<li>The <a href="https://www.smartkarma.com/entities/fujitec-co-ltd" target="_blank" data-smartkarma-citation="entities:11686:1" rel="noopener">Fujitec Co Ltd (6406 JP)</a> EGM where activist Oasis Management wanted to spill the independent board members took place Friday.</li>
<li>Results were mixed, but generally a success for Oasis, with 9 of the 13 votes won. Preliminary analysis of "uncertain voter" split interesting, and "Glass Lewis Effect" stronger than expected.</li>
<li>The real shocker, however, was a footnote at the end of the announcement. This could (and should) have further repercussions. </li>
</ul>


The Fujitec Co Ltd (6406 JP) EGM where activist Oasis Management wanted to spill the independent board members took place Friday.
Results were mixed, but generally a success for Oasis, with 9 of the 13 votes won. Preliminary analysis of "uncertain voter" split interesting, and "Glass Lewis Effect" stronger than expected.
The real shocker, however, was a footnote at the end of the announcement. This could (and should) have further repercussions. 


Fujitec (6406) EGM - It WAS a Close-Run Thing, Glass Lewis Was the Big Winner, and SCANDAL?

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kito-corporation" target="_blank" data-smartkarma-citation="entities:19512:1" rel="noopener">Kito Corporation (6409 JP)</a> was taken private in 2003. It was re-IPOed by Carlyle in 2007 but Konecranes stayed an investor until 2016. Then it unwound.</li>
<li>Today, Kito announced the best results since pre-covid and forecasts for growth. They also announced KKR unit Crosby would launch a Tender to buy them out at a 62% premium.</li>
<li>Shareholder structure is highly unusual, and interesting to boot, especially looking at the most recent arrival in the top two. The fact there is a break fee is... telling.</li>
</ul>



Kito Corporation (6409 JP) was taken private in 2003. It was re-IPOed by Carlyle in 2007 but Konecranes stayed an investor until 2016. Then it unwound.
Today, Kito announced the best results since pre-covid and forecasts for growth. They also announced KKR unit Crosby would launch a Tender to buy them out at a 62% premium.
Shareholder structure is highly unusual, and interesting to boot, especially looking at the most recent arrival in the top two. The fact there is a break fee is... telling.


Kito (6409) Goes Private. Again. This Time With KKR, But Watch the Register

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 believe the S&amp;P 500, STOXX Europe 600, MSCI ACWI ex-U.S., EAFE, and MSCI China are pulling back to support at their prior breakout levels -- levels we believe will hold. Tech remains our favorite Sector globally. Additional attractive cyclical areas in which to add exposure at current levels include Financials in Europe, autos and auto parts stocks, and casinos and gaming in Macau... see report for a technical appraisal of all major markets and a collection of actionable stocks.

We believe the S&amp;P 500, STOXX Europe 600, MSCI ACWI ex-U.S., EAFE, and MSCI China are pulling back to support at their prior breakout levels -- levels we believe will hold. Tech remains our favorite Sector globally. Additional attractive cyclical areas in which to add exposure at current levels include Financials in Europe, autos and auto parts stocks, and casinos and gaming in Macau... see report for a technical appraisal of all major markets and a collection of actionable stocks.

Global Equity Strategy: Major Indexes at Logical Support

Our positive outlook on global equities (both the MSCI ACWI and ACWI ex-US) remains intact and we believe a “buy the dip” strategy is warranted. We recommend taking advantage of recent weakness -- where applicable -- by adding exposure to cyclical Sectors. Today’s recommendations focus on autos, auto parts, and machinery which span the Consumer Discretionary and Manufacturing Sectors.

Our positive outlook on global equities (both the MSCI ACWI and ACWI ex-US) remains intact and we believe a “buy the dip” strategy is warranted. We recommend taking advantage of recent weakness -- where applicable -- by adding exposure to cyclical Sectors. Today’s recommendations focus on autos, auto parts, and machinery which span the Consumer Discretionary and Manufacturing Sectors. 

Global Equity Strategy: Overweight Cyclicals

Finland

Konecranes Oyj is an engineering group that specializes in overhead lifting equipment and maintenance services.  The Company's product line includes workstation cranes, industrial cranes, cranes for shipyards and ports, including tailor made products, light lifting systems, and monorail systems.  Konecranes Oyj sells toindustrial companies, and to harbors and shipyards around the world.

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Konecranes OYJ (KCR FH)

Quiddity Leaderboard SE600 Jun 23: Credit Suisse Deletion Imminent; Multiple Changes in June

The rankings for the June 2023 review will be based on float market caps as at the close of trading on 31st May 2023. The Top 5 Potential ADDs...

Janaghan Jeyakumar, CFA

Fujitec (6406) EGM - It WAS a Close-Run Thing, Glass Lewis Was the Big Winner, and SCANDAL?

The Fujitec EGM was, indeed, a close-run thing. A tight vote, and Oasis' losers clearly showed passive voting against. And there was a scandalous...

Travis Lundy

Kito (6409) Goes Private. Again. This Time With KKR, But Watch the Register

Kito (6409) has agreed to be taken private again, this time by KKR. It is a 60% premium but the EBITDA multiple isn't high, and the register is...

Travis Lundy

Global Equity Strategy: Major Indexes at Logical Support

We believe the S&P 500, STOXX Europe 600, MSCI ACWI ex-U.S., EAFE, and MSCI China are pulling back to support at their prior breakout levels --...

Vermilion Research

Global Equity Strategy: Overweight Cyclicals

Our positive outlook on global equities (both the MSCI ACWI and ACWI ex-US) remains intact and we believe a “buy the dip” strategy is warranted. We...

Vermilion Research

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