Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Bottom-Up

<ul>
<li>
Context: Friday’s sell-off occurred after the Australian market closed, but several ASX-listed companies were swept up in the decline through dual listings or U.S.-traded ADRs.</li>
<li>
This Insight looks at the impact on prominent <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</a> constituents — including BHP, CSL, and major banks. While some companies showed limited movement, others, such as BHP, experienced sharper declines.</li>
<li>
Why Read: Understand where the Australian market might be headed when trading resumes after the weekend.</li>
</ul>



Context: Friday’s sell-off occurred after the Australian market closed, but several ASX-listed companies were swept up in the decline through dual listings or U.S.-traded ADRs.

This Insight looks at the impact on prominent S&amp;P/ASX 200 constituents — including BHP, CSL, and major banks. While some companies showed limited movement, others, such as BHP, experienced sharper declines.

Why Read: Understand where the Australian market might be headed when trading resumes after the weekend.


BHP (BHP AU/US) And Woodside (WDS AU/US) Slide as U.S. Sell-Off Spills Into Australian Stocks

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Washington H. Soul Pattinson and Co. Ltd / Event-Driven

<ul>
<li>Following shareholder approval, there'll be an index DELetion for <a href="https://www.smartkarma.com/entities/brickworks-ltd" target="_blank" data-smartkarma-citation="entities:2726:1" rel="noopener">Brickworks (BKW AU)</a>, and an index UPweight for <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Soul Patts (SOL AU)</a>. BKW's last day of trading is the 15th September. </li>
<li>
<a href="https://www.smartkarma.com/entities/minebea-mitsumi-inc" target="_blank" data-smartkarma-citation="entities:5032:1" rel="noopener">Minebea Mitsumi (6479 JP)</a>'s Offer for <a href="https://www.smartkarma.com/entities/shibaura-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:12704:1" rel="noopener">Shibaura Electronics (6957 JP)</a>. That leaves this to be done by <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, unopposed.</li>
<li>After a protracted succession stoush, Rupert Murdoch's son Lachlan asserts control of <a href="https://www.smartkarma.com/entities/news-corp-class-b" target="_blank" data-smartkarma-citation="entities:5990:1" rel="noopener">News Corp Class B (NWS US)</a> and <a href="https://www.smartkarma.com/entities/fox-corp-b470c4a5-c947-401c-af9f-3e6497d73406" target="_blank" data-smartkarma-citation="entities:36135:1" rel="noopener">Fox (FOXA US)</a>.</li>
</ul>


Following shareholder approval, there'll be an index DELetion for Brickworks (BKW AU), and an index UPweight for Soul Patts (SOL AU). BKW's last day of trading is the 15th September. 

Minebea Mitsumi (6479 JP)'s Offer for Shibaura Electronics (6957 JP). That leaves this to be done by Yageo Corporation (2327 TT), unopposed.
After a protracted succession stoush, Rupert Murdoch's son Lachlan asserts control of News Corp Class B (NWS US) and Fox (FOXA US).


Last Week In Event SPACE: Brickworks/Soul Patts, Shibaura Electronics, News Corp/Fox/REA, Dongfeng

<ul>
<li>After a protracted succession stoush, Rupert Murdoch's son Lachlan is set to take control of <a href="https://www.smartkarma.com/entities/news-corp-class-b" target="_blank" data-smartkarma-citation="entities:5990:1" rel="noopener">News Corp (NWS US)</a> and <a href="https://www.smartkarma.com/entities/fox-corp-b470c4a5-c947-401c-af9f-3e6497d73406" target="_blank" data-smartkarma-citation="entities:36135:1" rel="noopener">Fox (FOXA US)</a>.</li>
<li>Preceding my comments on News Corp and 62%-held <a href="https://www.smartkarma.com/entities/rea-group-ltd" target="_blank" data-smartkarma-citation="entities:699:1" rel="noopener">REA Group Ltd (REA AU)</a> are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


After a protracted succession stoush, Rupert Murdoch's son Lachlan is set to take control of News Corp (NWS US) and Fox (FOXA US).
Preceding my comments on News Corp and 62%-held REA Group Ltd (REA AU) are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: The Murdoch Succession Into News Corp, Fox & REA

<ul>
<li>This is a follow-up on the pair trade between <a href="https://www.smartkarma.com/entities/rea-group-ltd" target="_blank" data-smartkarma-citation="entities:699:1" rel="noopener">REA Group (REA AU)</a> and <a href="https://www.smartkarma.com/entities/news-corp" target="_blank" data-smartkarma-citation="entities:26926:1" rel="noopener">News Corp (NWS AU)</a>, originally flagged due to a significant deviation in their price ratio.</li>
<li>
Highlight: The pair hit its profit target as REA Group outperformed its parent post-earnings, pushing the price ratio back across the one-standard-deviation line.</li>
<li>
Why Read: This Insights shows how catalysts such as earnings events can accelerate mean-reversion trades and deliver above-target returns.</li>
</ul>


This is a follow-up on the pair trade between REA Group (REA AU) and News Corp (NWS AU), originally flagged due to a significant deviation in their price ratio.

Highlight: The pair hit its profit target as REA Group outperformed its parent post-earnings, pushing the price ratio back across the one-standard-deviation line.

Why Read: This Insights shows how catalysts such as earnings events can accelerate mean-reversion trades and deliver above-target returns.


REA Group (REA AU) Vs. News Corp (NWS AU): Earnings Catalyst Drives Mean-Reversion Win

Fisher & Paykel Healthcare Cor / Equity Bottom-Up

<ul>
<li>
Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.</li>
<li>
Highlight: Currently six pair trade opportunities across three markets and three sectors persist.</li>
<li>
Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.</li>
</ul>



Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.

Highlight: Currently six pair trade opportunities across three markets and three sectors persist.

Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.


Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (04 Aug)

United States

News Corporation is a media and information services company. The Company's business is comprised of news and information, book publishing, digital real estate, and cable network programming services. News serves customers globally.

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News (NWS AU)

BHP (BHP AU/US) And Woodside (WDS AU/US) Slide as U.S. Sell-Off Spills Into Australian Stocks

Friday’s U.S. market rout pushed dual-listed Australian stocks lower, with BHP and Woodside among the biggest movers. US-traded ADRs and futures...

Gaudenz Schneider

Last Week In Event SPACE: Brickworks/Soul Patts, Shibaura Electronics, News Corp/Fox/REA, Dongfeng

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

StubWorld: The Murdoch Succession Into News Corp, Fox & REA

Current levels for News Corp are elevated but not extreme. If in, I'd look to unwind the stub, with a view to reversing - short News Corp, Long REA.

David Blennerhassett

REA Group (REA AU) Vs. News Corp (NWS AU): Earnings Catalyst Drives Mean-Reversion Win

Pair trade between REA Group and News Corp hits profit target as REA Group outperforms post-earnings, showcasing the impact of catalysts on mean...

Gaudenz Schneider

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (04 Aug)

Statistical methodology identifies six pair trade opportunities across three markets and three sectors, offering unique insights into relative value.

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

BHP (BHP AU/US) And Woodside (WDS AU/US) Slide as U.S. Sell-Off Spills Into Australian Stocks

Friday’s U.S. market rout pushed dual-listed Australian stocks lower, with BHP and Woodside among the biggest movers. US-traded ADRs and futures...

Gaudenz Schneider

Last Week In Event SPACE: Brickworks/Soul Patts, Shibaura Electronics, News Corp/Fox/REA, Dongfeng

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

StubWorld: The Murdoch Succession Into News Corp, Fox & REA

Current levels for News Corp are elevated but not extreme. If in, I'd look to unwind the stub, with a view to reversing - short News Corp, Long REA.

David Blennerhassett

REA Group (REA AU) Vs. News Corp (NWS AU): Earnings Catalyst Drives Mean-Reversion Win

​Pair trade between REA Group and News Corp hits profit target as REA Group outperforms post-earnings, showcasing the impact of catalysts on mean...

Gaudenz Schneider

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (04 Aug)

​Statistical methodology identifies six pair trade opportunities across three markets and three sectors, offering unique insights into relative value.

Gaudenz Schneider

Pair trade between REA Group and News Corp hits profit target as REA Group outperforms post-earnings, showcasing the impact of catalysts on mean...

Statistical methodology identifies six pair trade opportunities across three markets and three sectors, offering unique insights into relative value.