Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong Alpha portfolio returned -2.89% in November versus +1.72% for its benchmark index. The HK Alpha portfolio has outperformed Hong Kong indexes by 33% to 45% since inception.</li>
<li>The portfolio continues to generate 57% of its returns from alpha (idiosyncratic returns) while maintaining a Sharpe ratio of 2.19 YTD.</li>
<li>We have sold positions in the materials and industrials sectors and added positions in telecom, gold, and insurance industries at the end of November.</li>
</ul>


The Hong Kong Alpha portfolio returned -2.89% in November versus +1.72% for its benchmark index. The HK Alpha portfolio has outperformed Hong Kong indexes by 33% to 45% since inception.
The portfolio continues to generate 57% of its returns from alpha (idiosyncratic returns) while maintaining a Sharpe ratio of 2.19 YTD.
We have sold positions in the materials and industrials sectors and added positions in telecom, gold, and insurance industries at the end of November.


HONG KONG ALPHA PORTFOLIO: (November 2025)

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>In the last 4 weeks, the HSI constituents with the highest yields have gained 3-4%, while the lowest-yielding ones have lost an average of 4%. </li>
<li>The top 15 high-yield constituents will deliver an average yield of 6.2% for FY26. The number increased to 25 when we include those at over 5%.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a>, <a href="https://www.smartkarma.com/entities/cnooc-ltd" target="_blank" data-smartkarma-citation="entities:175:1" rel="noopener">CNOOC Ltd (883 HK)</a>, <a href="https://www.smartkarma.com/entities/haidilao-international-holding" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao International Holding (6862 HK)</a>, <a href="https://www.smartkarma.com/entities/china-unicom-hong-kong-ltd" target="_blank" data-smartkarma-citation="entities:1016:1" rel="noopener">China Unicom Hong Kong (762 HK)</a>, and <a href="https://www.smartkarma.com/entities/power-assets-holdings-ltd" target="_blank" data-smartkarma-citation="entities:788:1" rel="noopener">Power Assets Holdings (6 HK)</a> also have net cash. </li>
</ul>


In the last 4 weeks, the HSI constituents with the highest yields have gained 3-4%, while the lowest-yielding ones have lost an average of 4%. 
The top 15 high-yield constituents will deliver an average yield of 6.2% for FY26. The number increased to 25 when we include those at over 5%.

China Mobile (941 HK), CNOOC Ltd (883 HK), Haidilao International Holding (6862 HK), China Unicom Hong Kong (762 HK), and Power Assets Holdings (6 HK) also have net cash. 


Global Editor, Base Oil News

Iain Pocock

Global Editor

Global Base Oils and Lubricants Markets

Base Oil News

Base Oil News focuses on the interplay between fundamentals and prices in the global base oils and lubricants markets.

Baseoilnews.com combines daily, weekly and monthly base oils and lubes fundamentals data from every region of the world to build the most comprehensive and up-to-date global picture of the state of the market.

The data and analysis provide key tools to understand current market developments and opportunities and to anticipate how the market is likely to behave in the coming months.

Base oils producers, lube blenders and consumers can then better plan accordingly.

Baseoilnews.com analyses and publishes market news and data every day as it breaks.

Commodities

<ul><li>Asia’s base oils prices extend steep fall vs gasoil prices.</li><li>Weaker outright prices compound the drop.</li><li>Sliding price-differentials, combined with increasingly firm diesel premium to crude oil, increase pressure on refiners to adjust output in response.</li></ul>

Asia’s base oils prices extend steep fall vs gasoil prices.Weaker outright prices compound the drop.Sliding price-differentials, combined with increasingly firm diesel premium to crude oil, increase pressure on refiners to adjust output in response.

Asia base oils supply outlook: Week of 10 November

<ul><li>Asia’s base oils demand likely to stay muted.</li><li>Expectations of healthy availability of supply and seasonal slowdown in demand curb urgency to lock in additional volumes.</li><li>Seasonal slowdown could limit immediate impact of any adjustment in base oils output because of lower margins.</li></ul>

Asia’s base oils demand likely to stay muted.Expectations of healthy availability of supply and seasonal slowdown in demand curb urgency to lock in additional volumes.Seasonal slowdown could limit immediate impact of any adjustment in base oils output because of lower margins.

Asia base oils demand outlook: Week of 10 November

<ul><li>Asia’s base oils prices extend fall vs gasoil prices, with Group II heavy-grade differentials slipping to lowest since start of Q3 2024.</li><li>Ongoing squeeze on base oils margins increases importance for refiners to maintain balanced-to-tight supplies to boost their leverage to adjust prices accordingly.</li><li>Weaker margins and importance of balanced supplies boost incentive for refiners to adjust output accordingly.</li></ul>

Asia’s base oils prices extend fall vs gasoil prices, with Group II heavy-grade differentials slipping to lowest since start of Q3 2024.Ongoing squeeze on base oils margins increases importance for refiners to maintain balanced-to-tight supplies to boost their leverage to adjust prices accordingly.Weaker margins and importance of balanced supplies boost incentive for refiners to adjust output accordingly.

Asia base oils supply outlook: Week of 3 November

China

PetroChina Company Limited operates as an oil and gas company. The Company offers crude oil and oil products exploration, development, production and marketing. PetroChina also markets petrochemical products and derivative chemicals.

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PetroChina (601857 CH)

HONG KONG ALPHA PORTFOLIO: (November 2025)

We made small changes to the HK Alpha portfolio mid-month. At the close on 12/12 we sold all of First Pacific (142 HK) and added 2% to our...

David Mudd

HK Strategy: Focusing Back on Yields

High-yield HSI constituents have outperformed low-yield ones in the last 4 weeks, reversing the pattern this year. The top 15 will deliver a 6.2%...

Osbert Tang, CFA

Asia base oils supply outlook: Week of 10 November

Asia’s base oils prices extend steep fall vs gasoil prices. Weaker outright prices compound the drop. Sliding price-differentials, combined with...

Base Oil News

Asia base oils demand outlook: Week of 10 November

Asia’s base oils demand likely to stay muted. Expectations of healthy availability of supply and seasonal slowdown in demand curb urgency to lock...

Base Oil News

Asia base oils supply outlook: Week of 3 November

Asia’s base oils prices extend fall vs gasoil prices, with Group II heavy-grade differentials slipping to lowest since start of Q3 2024. Ongoing...

Base Oil News

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HONG KONG ALPHA PORTFOLIO: (November 2025)

We made small changes to the HK Alpha portfolio mid-month. At the close on 12/12 we sold all of First Pacific (142 HK) and added 2% to our...

David Mudd

HK Strategy: Focusing Back on Yields

​High-yield HSI constituents have outperformed low-yield ones in the last 4 weeks, reversing the pattern this year. The top 15 will deliver a 6.2%...

Osbert Tang, CFA

Asia base oils supply outlook: Week of 10 November

Asia’s base oils prices extend steep fall vs gasoil prices. Weaker outright prices compound the drop. Sliding price-differentials, combined with...

Base Oil News

Asia base oils demand outlook: Week of 10 November

Asia’s base oils demand likely to stay muted. Expectations of healthy availability of supply and seasonal slowdown in demand curb urgency to lock...

Base Oil News

Asia base oils supply outlook: Week of 3 November

Asia’s base oils prices extend fall vs gasoil prices, with Group II heavy-grade differentials slipping to lowest since start of Q3 2024. Ongoing...

Base Oil News

High-yield HSI constituents have outperformed low-yield ones in the last 4 weeks, reversing the pattern this year. The top 15 will deliver a 6.2%...