Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Hong Kong Alpha Portfolio returned 5.23% in December and outperformed the benchmark by 5.92%.  The portfolio has outperformed Hong Kong indexes by 10.36% to 14.38% since its inception on 10/01/24.</li>
<li>About 80% of the portfolio's excess returns have been from alpha generation.  The portfolio has no exposure to Real Estate, Healthcare, Materials, or Energy at this time.</li>
<li>At month end, we sold ZhongAn Online P&amp;C Insurance C (6060 HK) , China Longyuan Power (916 HK) , CRRC Corp Ltd H (1766 HK), and <a href="https://www.smartkarma.com/entities/weibo-corp" target="_blank" data-smartkarma-citation="entities:35280:1" rel="noopener">Weibo (9898 HK)</a> .</li>
</ul>


Hong Kong Alpha Portfolio returned 5.23% in December and outperformed the benchmark by 5.92%.  The portfolio has outperformed Hong Kong indexes by 10.36% to 14.38% since its inception on 10/01/24.
About 80% of the portfolio's excess returns have been from alpha generation.  The portfolio has no exposure to Real Estate, Healthcare, Materials, or Energy at this time.
At month end, we sold ZhongAn Online P&amp;C Insurance C (6060 HK) , China Longyuan Power (916 HK) , CRRC Corp Ltd H (1766 HK), and Weibo (9898 HK) .


HONG KONG ALPHA PORTFOLIO (December 2024)

Equity Bottom-Up

Shanghai Electric Group / Equity Bottom-Up

<ul>
<li>Hong Kong Long-Only portfolio launched on October 1st with objective to generate alpha in the Hong Kong market.</li>
<li>Stocks are chosen from single stock insights as well as sector and weekly publications.</li>
<li>Positions will be adjusted once a month and the cash position will vary based on market conditions.</li>
</ul>


Hong Kong Long-Only portfolio launched on October 1st with objective to generate alpha in the Hong Kong market.
Stocks are chosen from single stock insights as well as sector and weekly publications.
Positions will be adjusted once a month and the cash position will vary based on market conditions.


<ul>
<li>Hong Kong tech sector leads the market higher with increased momentum and lower volatility.  Short selling has abated with unwind of HKD carry trade.</li>
<li>
<a href="https://www.smartkarma.com/entities/sands-china-ltd" target="_blank" data-smartkarma-citation="entities:182:1" rel="noopener">Sands China (1928 HK)</a> had a breakout from a Falling Wedge pattern. The share price broke above its short-term averages with increasing momentum.
</li>
<li>
<a href="https://www.smartkarma.com/entities/china-feihe-ltd" target="_blank" data-smartkarma-citation="entities:24413:1" rel="noopener">China Feihe (6186 HK)</a> broke out from its downtrend with a Reversal from its U-Shaped Bottom.  <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a> broke out to a new YTD high.
</li>
</ul>


Hong Kong tech sector leads the market higher with increased momentum and lower volatility.  Short selling has abated with unwind of HKD carry trade.

Sands China (1928 HK) had a breakout from a Falling Wedge pattern. The share price broke above its short-term averages with increasing momentum.


China Feihe (6186 HK) broke out from its downtrend with a Reversal from its U-Shaped Bottom.  Techtronic Industries (669 HK) broke out to a new YTD high.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 23)

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>On 1 June, <a href="https://www.smartkarma.com/entities/mgm-resorts-international" target="_blank" data-smartkarma-citation="entities:16227:1" rel="noopener">MGM Resorts International (MGM US)</a> confirmed that it had received an offer from <a href="https://www.smartkarma.com/entities/iac-inc-people-incorporated" target="_blank" data-smartkarma-citation="entities:754:1" rel="noopener">People Incorporated (IAC) (IAC US)</a> to acquire it for US$48.30 per share. </li>
<li>
<a href="https://www.smartkarma.com/entities/mgm-china-holdings-limited" target="_blank" data-smartkarma-citation="entities:472:1" rel="noopener">MGM China (2282 HK)</a> rose 7% due to the near-term possibility that the acquisition could trigger a mandatory general offer (downstream offer) and the long-term possibility of a privatisation offer.   </li>
<li>The triggering of an MGO based on the chain principle is not guaranteed, and the potential offer would be well below the last close. Nevertheless, MGM China’s valuation remains undemanding.</li>
</ul>


On 1 June, MGM Resorts International (MGM US) confirmed that it had received an offer from People Incorporated (IAC) (IAC US) to acquire it for US$48.30 per share. 

MGM China (2282 HK) rose 7% due to the near-term possibility that the acquisition could trigger a mandatory general offer (downstream offer) and the long-term possibility of a privatisation offer.   
The triggering of an MGO based on the chain principle is not guaranteed, and the potential offer would be well below the last close. Nevertheless, MGM China’s valuation remains undemanding.


MGM China (2282 HK): An MGO Based on the Chain Principle Is Not a Sure Thing

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Sands China, First Pacific, Sunny Optical, Nissan Motor, New World Development, Vedanta Resources</li>
<li>Treasury yields were stable, with front-end yields declining marginally amid risk aversion in the equities market. Yields on the 2Y and 10Y USTs fell 1 bp each to 3.56% and 4.23%, respectively. Tech stocks retreated yesterday. Microsoft Corp’s share price fell 10%, after the company reported slightly weaker Cloud growth, and amid concerns over its AI spending and concentration risk to OpenAI.</li>
<li>The S&amp;P 500 edged down 0.1% to 6,969, while the Nasdaq slumped 0.7% to 23,685.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Sands China, First Pacific, Sunny Optical, Nissan Motor, New World Development, Vedanta Resources
Treasury yields were stable, with front-end yields declining marginally amid risk aversion in the equities market. Yields on the 2Y and 10Y USTs fell 1 bp each to 3.56% and 4.23%, respectively. Tech stocks retreated yesterday. Microsoft Corp’s share price fell 10%, after the company reported slightly weaker Cloud growth, and amid concerns over its AI spending and concentration risk to OpenAI.
The S&amp;P 500 edged down 0.1% to 6,969, while the Nasdaq slumped 0.7% to 23,685.


Hong Kong

Sands China develops, owns, and operates multi-use integrated resorts and casinos in Macao. The company's portfolio includes The Venetian Macao, The Londoner Macao, The Parisian Macao, The Plaza Macao, and Sands Macao, offering gaming, hotels, dining, retail, convention facilities, and entertainment. Sands China is headquartered in Macao and was founded in 2009.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sands China (1928 HK)

HONG KONG ALPHA PORTFOLIO (December 2024)

Hong Kong Alpha porfolio returned 5.29% in December and has outperformed Hong Kong indexes by 10% to 14% since its inception on 10/01/24.The...

David Mudd

HONG KONG ALPHA PORTFOLIO - Introduction

We have launched a Hong Kong portfolio with the aim to outperform HK indexes and generate alpha. Stocks are chosen from those highlighted in our...

David Mudd

Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 23)

Hong Kong tech sector is key to lead the market higher. Lower volatility & decreased short selling volume provide tailwinds for HSTECH index. Sands...

David Mudd

MGM China (2282 HK): An MGO Based on the Chain Principle Is Not a Sure Thing

The triggering of an MGO based on the chain principle is not guaranteed, and the potential offer would be well below the last close. Nevertheless,...

Arun George

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Sands China, First Pacific, Sunny Optical,...

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)