Quantitative Equity Analyst, DMA

Charlotte van Tiddens, CFA

Quantitative Equity Analyst

Technology-First Company

DMA is a technology-first company that provides an end-to-end SaaS solution to institutional investors. DMA enables regulated entities like asset managers, wealth managers, investment managers and financial advisors to connect their front and back office, break silos and reduce headcount.

Event-Driven

<ul>
<li>Naspers and Prosus outperformed the benchmark by a large margin, ending the quarter up 7.3% and 6.7%, respectively. The Capped SWIX finished the quarter down 2.3%.</li>
<li>Tencent was up 3.5% in HKD and 6.5% in ZAR.</li>
<li>Tencent currently makes up 74% of Prosus’ NAV, down 1 percentage point from 75% at the start of the year.</li>
</ul>


Naspers and Prosus outperformed the benchmark by a large margin, ending the quarter up 7.3% and 6.7%, respectively. The Capped SWIX finished the quarter down 2.3%.
Tencent was up 3.5% in HKD and 6.5% in ZAR.
Tencent currently makes up 74% of Prosus’ NAV, down 1 percentage point from 75% at the start of the year.


Naspers (NPN) X Prosus (PRX): Performance for Q1 2024, Gains Driven by Tencent, NAV Growth

<ul>
<li>Naspers and Prosus continue to come under pressure relative to their underlying holdings.</li>
<li>Since our last update on the 1st of March, Naspers’ look through discount has widened by 1.6 percentage points to 42%. </li>
<li>Naspers' discount to Prosus’ market value has widened notably by 2.1 percentage points to 11.3%. Prosus’ discount is only 30bps wider and is trading at 35.4%.</li>
</ul>


Naspers and Prosus continue to come under pressure relative to their underlying holdings.
Since our last update on the 1st of March, Naspers’ look through discount has widened by 1.6 percentage points to 42%. 
Naspers' discount to Prosus’ market value has widened notably by 2.1 percentage points to 11.3%. Prosus’ discount is only 30bps wider and is trading at 35.4%.


NPN X PRX: Discounts Continue to Come Under Pressure

<ul>
<li>During the last 3 weeks, Naspers and Prosus have come under pressure relative to their underlying portfolios.</li>
<li>Since reaching a new all-time low on the 12th of February, Naspers’ discount has widened by 6 percentage points to 40.7%.</li>
<li>Prosus’ discount has widened 5.7 percentage points to 35.4%. Naspers and Prosus are down 9% and 8% respectively, relative to a decline of 1.9% for Tencent in ZAR.</li>
</ul>


During the last 3 weeks, Naspers and Prosus have come under pressure relative to their underlying portfolios.
Since reaching a new all-time low on the 12th of February, Naspers’ discount has widened by 6 percentage points to 40.7%.
Prosus’ discount has widened 5.7 percentage points to 35.4%. Naspers and Prosus are down 9% and 8% respectively, relative to a decline of 1.9% for Tencent in ZAR.


NPN X PRX Discount Update Discounts Widen to Pare Back Strong YTD Gains

<ul>
<li>
<a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a> has underperformed <a href="https://www.smartkarma.com/entities/prosus-nv-2e2a2230-64b0-4044-b797-a3880fcb487a" target="_blank" data-smartkarma-citation="entities:28301:1" rel="noopener">Prosus NV (PRX SJ)</a> by 3.9% since the start of the year.</li>
<li>This has widened Naspers' discount to Prosus' market value to 13.3% from 9.9%, a level last seen during July 2023.</li>
<li>Opportunity to put on a pairs trade, long NPN short PRX as we believe the relative underperformance is overdone and a structural shift in the discount is underway.</li>
</ul>



Naspers (NPN SJ) has underperformed Prosus NV (PRX SJ) by 3.9% since the start of the year.
This has widened Naspers' discount to Prosus' market value to 13.3% from 9.9%, a level last seen during July 2023.
Opportunity to put on a pairs trade, long NPN short PRX as we believe the relative underperformance is overdone and a structural shift in the discount is underway.


Naspers (NPN) X Prosus (PRX) Pairs Trade Opportunity as Naspers Comes Under Pressure

<ul>
<li>In yesterday’s trading session, Naspers and Prosus followed the market lower leading up to and after the US CPI print (headline worse than expected, core inline). </li>
<li>Naspers and Prosus closed 1.4% and 1.9% lower, reducing Naspers’ discount to Prosus’ market value to its narrowest level since Prosus listed. The discount closed at 10.4% (currently 10.9%).</li>
<li>Naspers has outperformed Prosus by 2.2% during the last 3 trading days. </li>
</ul>


In yesterday’s trading session, Naspers and Prosus followed the market lower leading up to and after the US CPI print (headline worse than expected, core inline). 
Naspers and Prosus closed 1.4% and 1.9% lower, reducing Naspers’ discount to Prosus’ market value to its narrowest level since Prosus listed. The discount closed at 10.4% (currently 10.9%).
Naspers has outperformed Prosus by 2.2% during the last 3 trading days. 


Naspers: Discount to Prosus Market Value Reaches Narrowest Level Since Prosus Listing

South Africa

Naspers Limited operates in the technology industry. The Company invests in global internet companies across the world.

Naspers (NPN SJ)

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NPN X PRX: Discounts Continue to Come Under Pressure

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NPN X PRX Discount Update Discounts Widen to Pare Back Strong YTD Gains

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