Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong Alpha portfolio underperformed its benchmark index during April by 1.1%.  Since its inception last year, the portfolio has outperformed its benchmark by 18%.</li>
<li>Although the tech sector was hit after April 2nd, the portfolio made 2% in its tech exposure for the month.  We reduced the portfolio's volatility &amp; increased its Sharpe ratio.</li>
<li>At the end of April, sold positions that are at risk from the tariff uncertainty and increased our exposure to China domestic consumption.</li>
</ul>


The Hong Kong Alpha portfolio underperformed its benchmark index during April by 1.1%.  Since its inception last year, the portfolio has outperformed its benchmark by 18%.
Although the tech sector was hit after April 2nd, the portfolio made 2% in its tech exposure for the month.  We reduced the portfolio's volatility &amp; increased its Sharpe ratio.
At the end of April, sold positions that are at risk from the tariff uncertainty and increased our exposure to China domestic consumption.


<ul>
<li>China ETF flows in June continued to show positive momentum while other categories remained flat.  Southbound Connect Flows were positive while Northbound Connect recorded a Net Sell.</li>
<li>Midea Real Estate Holdings jumped on plans to privatize its property development business</li>
<li>Shanghai Microport fell after launching a share placement at a 15% discount.  The share price  is hitting all time lows.</li>
</ul>


China ETF flows in June continued to show positive momentum while other categories remained flat.  Southbound Connect Flows were positive while Northbound Connect recorded a Net Sell.
Midea Real Estate Holdings jumped on plans to privatize its property development business
Shanghai Microport fell after launching a share placement at a 15% discount.  The share price  is hitting all time lows.


The Heat Is On: News Flow and Sentiment in HONG KONG

<ul>
<li>The bad news is that Hong Kong will not have a V-Shaped recovery which will keep market sentiment subdued</li>
<li>The good news is that Hong Kong will not have a V-Shaped recovery which will contribute to a reduction in overall market volatility</li>
<li>After an epic bear market, Hong Kong will enter a secular bull market this year</li>
</ul>


The bad news is that Hong Kong will not have a V-Shaped recovery which will keep market sentiment subdued
The good news is that Hong Kong will not have a V-Shaped recovery which will contribute to a reduction in overall market volatility
After an epic bear market, Hong Kong will enter a secular bull market this year


Hong Kong: A Tale of Two Markets and When to Re-Enter

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li>Results releases from <a href="https://www.smartkarma.com/entities/stella-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:7610:1" rel="noopener">Stella International (1836 HK)</a> / <a target="_blank" rel="noopener">Crystal International (2232 HK)</a> were contrasting, with the former showing a 19% decline in profitability and the latter a 11% increase, despite headwinds.</li>
<li>We discuss <a href="https://www.smartkarma.com/entities/fountain-set-holdings-limited" target="_blank" data-smartkarma-citation="entities:11520:1" rel="noopener">Fountain Set Hldgs (420 HK)</a> and the likelihood of a dividend increase, coupled with its 59% discount to NCAV, making it a net-net. </li>
<li>Our top pick is <a href="https://www.smartkarma.com/entities/jnby-design-limited" target="_blank" data-smartkarma-citation="entities:23642:1" rel="noopener">JNBY Design (3306 HK)</a>, still for its high ROCE &gt;30%, coupled with a good net margin, single-digit profit growth, 9.5x PE, and ~7% dividend yield. </li>
</ul>


Results releases from Stella International (1836 HK) / Crystal International (2232 HK) were contrasting, with the former showing a 19% decline in profitability and the latter a 11% increase, despite headwinds.
We discuss Fountain Set Hldgs (420 HK) and the likelihood of a dividend increase, coupled with its 59% discount to NCAV, making it a net-net. 
Our top pick is JNBY Design (3306 HK), still for its high ROCE &gt;30%, coupled with a good net margin, single-digit profit growth, 9.5x PE, and ~7% dividend yield. 


HK-Listed Apparel & Footwear Screener August 2026: 12 Stock Universe With Average Yield 8.8%

<ul>
<li>Top-Yielding stocks are <a href="https://www.smartkarma.com/entities/nameson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22670:1" rel="noopener">Nameson Holdings (1982 HK)</a> at 12% and <a href="https://www.smartkarma.com/entities/stella-international" target="_blank" data-smartkarma-citation="entities:7610:1" rel="noopener">Stella International (1836 HK)</a>  at 9.4%, with six other names between 7% and 9%.</li>
<li>Deep value in <a href="https://www.smartkarma.com/entities/fountain-set-hldgs" target="_blank" data-smartkarma-citation="entities:11520:1" rel="noopener">Fountain Set Hldgs (420 HK)</a>, which trades at a 59% discount to NCAV ( Net Current Asset Value) and a 8% dividend yield (paid to wait). </li>
<li>Insider buying is active in <a target="_blank">Texwinca Holdings (321 HK)</a>, worth exploring trades at a 7.8% dividend yield with &gt;67% of market cap in cash. </li>
</ul>


Top-Yielding stocks are Nameson Holdings (1982 HK) at 12% and Stella International (1836 HK)  at 9.4%, with six other names between 7% and 9%.
Deep value in Fountain Set Hldgs (420 HK), which trades at a 59% discount to NCAV ( Net Current Asset Value) and a 8% dividend yield (paid to wait). 
Insider buying is active in Texwinca Holdings (321 HK), worth exploring trades at a 7.8% dividend yield with &gt;67% of market cap in cash. 


HK-Listed Apparel & Footwear Screener April 2026: 12 Stock Universe With Average ~8% Yield

Hong Kong

Stella International is an investment holding company primarily engaged in the development, manufacturing, and sale of premium footwear products and leather goods. The company also operates in footwear retailing and wholesaling, offering products under its own brands such as Stella Luna. It was founded in 1982 and is headquartered in Kowloon, Hong Kong.

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Stella International (1836 HK)

HONG KONG ALPHA PORTFOLIO (April 2025)

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David Mudd

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David Mudd

Hong Kong: A Tale of Two Markets and When to Re-Enter

HSI has now broken key resistance levels or 17k (Bear Market Trend Channel), 17,300 (200 Day Moving Average) and 17,500 (Upper Bollinger Band). ...

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HK-Listed Apparel & Footwear Screener August 2026: 12 Stock Universe With Average Yield 8.8%

Our textile screener universe is a high-yield value hunting ground. The average yield on the basket of stocks is 8.8%. Following a recent market...

Sameer Taneja

HK-Listed Apparel & Footwear Screener April 2026: 12 Stock Universe With Average ~8% Yield

Our textile screener universe is a high-yield value hunting ground. The average yield of the basket is 8.1%, and the PE is 10.2x, with mostly high...

Sameer Taneja

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