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

Cross Asset Strategy

<ul>
<li>AI boom reflected in record fund ownership in ASML Holding NV (ASML NA), NVIDIA Corp and Taiwan Semiconductor (TSMC) (2330 TT).</li>
<li>The 'Magnificent 7' group of stocks have hit a record underweight of -6.83% below the MSCI ACWI index.  They collectively account for 11.2% of the average Global fund.</li>
<li>Recovery Stocks: The old guard of At&amp;T Inc (T US), International Business Machines (IBM US) and General Electric (GE US) appear to be gathering some support from active Global funds.</li>
</ul>


AI boom reflected in record fund ownership in ASML Holding NV (ASML NA), NVIDIA Corp and Taiwan Semiconductor (TSMC) (2330 TT).
The 'Magnificent 7' group of stocks have hit a record underweight of -6.83% below the MSCI ACWI index.  They collectively account for 11.2% of the average Global fund.
Recovery Stocks: The old guard of At&amp;T Inc (T US), International Business Machines (IBM US) and General Electric (GE US) appear to be gathering some support from active Global funds.


Global Stock Positioning:  MSFT Dominates, Mag7 Record U/W, Apple Inflows, Tobacco Uninvestable?

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA (NVDA US)</a> and <a href="https://www.smartkarma.com/entities/sherwin-williams-co-the" target="_blank" data-smartkarma-citation="entities:15539:1" rel="noopener">Sherwin Williams (SHW US)</a> will replace <a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel (INTC US)</a> and <a href="https://www.smartkarma.com/entities/dow-inc" target="_blank" data-smartkarma-citation="entities:19107:1" rel="noopener">Dow (DOW US)</a> in the <a href="https://www.smartkarma.com/entities/dow-jones-industrial-average" target="_blank" data-smartkarma-citation="entities:22887:1" rel="noopener">Dow Jones Industrial Average</a> at the close on 7 November.</li>
<li>The impact of passive trading is highest in <a href="https://www.smartkarma.com/entities/sherwin-williams-co-the" target="_blank" data-smartkarma-citation="entities:15539:1" rel="noopener">Sherwin Williams Co (SHW US)</a> and <a href="https://www.smartkarma.com/entities/dow-inc" target="_blank" data-smartkarma-citation="entities:19107:1" rel="noopener">Dow (DOW US)</a> in terms of days of ADV and free float. Round-trip trade is US$16.5bn.</li>
<li>Given the ad hoc nature of the rebalances and the short timeline between announcement and implementation, the stocks could move over the rest of the week.</li>
</ul>



NVIDIA (NVDA US) and Sherwin Williams (SHW US) will replace Intel (INTC US) and Dow (DOW US) in the Dow Jones Industrial Average at the close on 7 November.
The impact of passive trading is highest in Sherwin Williams Co (SHW US) and Dow (DOW US) in terms of days of ADV and free float. Round-trip trade is US$16.5bn.
Given the ad hoc nature of the rebalances and the short timeline between announcement and implementation, the stocks could move over the rest of the week.


Dow Jones Industrials (INDU) Index Rebalance: NVIDIA, Sherwin-Williams Replace Intel, Dow

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

Raytheon Technologies  / Equity Bottom-Up

<ul><li>RTX Corporation reported a solid performance in the third quarter of 2024, reflecting continued strength across its varied segments, including significant demand in both commercial airlines and defense sectors.</li><li>The company's adjusted sales increased by 8%, demonstrating robust organic growth, while segment margins expanded by 100 basis points, and it achieved a strong free cash flow of $2 billion.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

RTX Corporation reported a solid performance in the third quarter of 2024, reflecting continued strength across its varied segments, including significant demand in both commercial airlines and defense sectors.The company's adjusted sales increased by 8%, demonstrating robust organic growth, while segment margins expanded by 100 basis points, and it achieved a strong free cash flow of $2 billion.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

RTX Corporation: What Is The Expected Revenue Impact Of Global Defense Spending and Military Modernization? - Major Drivers

<ul><li>In the second quarter of 2024, Raytheon Technologies Corporation (RTX) showcased a robust performance, underpinned by double-digit top-line growth and expanded margins, indicating significant strides in its operational and financial health.</li><li>Despite various challenges, the company's strategic execution and commercial advancements have strengthened its market position.</li><li>However, issues concerning legal settlements and contract adjustments have necessitated substantial financial charges, which might raise concerns among some stakeholders.</li></ul>

In the second quarter of 2024, Raytheon Technologies Corporation (RTX) showcased a robust performance, underpinned by double-digit top-line growth and expanded margins, indicating significant strides in its operational and financial health.Despite various challenges, the company's strategic execution and commercial advancements have strengthened its market position.However, issues concerning legal settlements and contract adjustments have necessitated substantial financial charges, which might raise concerns among some stakeholders.

RTX Corporation: Expanding Market Presence in Defense and Commercial Aerospace! - Major Drivers

<ul><li>Raytheon Technologies Corporation (RTX) started off the year strongly with emphasis on attaining a strong foundation for the future.</li><li>The company is making headway in transforming its three business units: Pratt & Whitney, Collins Aerospace, and Raytheon into industry leaders that can withstand increasing sales and operating profit growth.</li><li>The company's backlog has reached a record high of over $200 billion which is positive evidence of its market strength.</li></ul>

Raytheon Technologies Corporation (RTX) started off the year strongly with emphasis on attaining a strong foundation for the future.The company is making headway in transforming its three business units: Pratt & Whitney, Collins Aerospace, and Raytheon into industry leaders that can withstand increasing sales and operating profit growth.The company's backlog has reached a record high of over $200 billion which is positive evidence of its market strength.

RTX Corporation: These Are The 6 Pivotal Factors Impacting Its Performance In 2024 & Beyond! - Financial Forecasts

United States

Raytheon Technologies Corporation operates as an aircraft manufacturing company. The Company focuses on technology offerings and engineering teams to deliver innovative solutions such as aero structures, avionics, interiors, mechanical systems, mission systems, aircraft engines, power and control systems, radars, software, and other products.

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Raytheon Technologies (RTX US)

Global Stock Positioning: MSFT Dominates, Mag7 Record U/W, Apple Inflows, Tobacco Uninvestable?

The latest in stock-level investor positioning among over 300 active Global funds. We explore the AI boom, key over/underweights, Tobacco's...

Steven Holden

Dow Jones Industrials (INDU) Index Rebalance: NVIDIA, Sherwin-Williams Replace Intel, Dow

NVIDIA and Sherwin-Williams will replace Dow and Intel in the index. Round-trip trade is US$16.5bn. There is a lot to buy in Sherwin-Williams both...

Brian Freitas

RTX Corporation: What Is The Expected Revenue Impact Of Global Defense Spending and Military Modernization? - Major Drivers

RTX Corporation reported a solid performance in the third quarter of 2024, reflecting continued strength across its varied segments, including...

Baptista Research

RTX Corporation: Expanding Market Presence in Defense and Commercial Aerospace! - Major Drivers

In the second quarter of 2024, Raytheon Technologies Corporation (RTX) showcased a robust performance, underpinned by double-digit top-line growth...

Baptista Research

RTX Corporation: These Are The 6 Pivotal Factors Impacting Its Performance In 2024 & Beyond! - Financial Forecasts

Raytheon Technologies Corporation (RTX) started off the year strongly with emphasis on attaining a strong foundation for the future. The company...

Baptista Research

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