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>The percentage of Global funds invested in Taiwan hits an all-time high of 57.8%.</li>
<li>Taiwan has been a key beneficiary of manager rotation alongside India, Argentina and South Korea over the last 6-months.</li>
<li>TSMC is the dominant stock holding, with 49.8% of funds holding a position and has hit record ownership among Global funds.</li>
</ul>


The percentage of Global funds invested in Taiwan hits an all-time high of 57.8%.
Taiwan has been a key beneficiary of manager rotation alongside India, Argentina and South Korea over the last 6-months.
TSMC is the dominant stock holding, with 49.8% of funds holding a position and has hit record ownership among Global funds.


Equity Bottom-Up

Voltronic Power Technology / Equity Bottom-Up

<ul>
<li>Ownership levels in Voltronic Power Technology rise as EM funds open new positions.</li>
<li>A record 15.7% of EM long-only funds own a position, with Wasatch and Morgan Stanley among the high conviction holders.</li>
<li>Voltronic Power Technology is now the 12th most widely owned stock in Taiwan and the 7th most overweighted company.  </li>
</ul>


Ownership levels in Voltronic Power Technology rise as EM funds open new positions.
A record 15.7% of EM long-only funds own a position, with Wasatch and Morgan Stanley among the high conviction holders.
Voltronic Power Technology is now the 12th most widely owned stock in Taiwan and the 7th most overweighted company.  


<ul>
<li>Delta Electronics and Wiwynn Corp among 6 Taiwan stocks at their highest levels of fund ownership among active Emerging Market funds.</li>
<li>The combined weight in these 6 stocks has aggressively moved higher to 1.2% from less than 30bps in 2018.</li>
<li>All stocks enter the top 15 most widely held companies in Taiwan, but potential for further buying is clearly there.</li>
</ul>


Delta Electronics and Wiwynn Corp among 6 Taiwan stocks at their highest levels of fund ownership among active Emerging Market funds.
The combined weight in these 6 stocks has aggressively moved higher to 1.2% from less than 30bps in 2018.
All stocks enter the top 15 most widely held companies in Taiwan, but potential for further buying is clearly there.


Record Fund Ownership in Six Taiwanese Companies

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

Event-Driven

Delta Electronics Thailand  / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/delta-electronics-thai-pcl" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics Thai (DELTA TB)</a> is now the largest stock in Thailand by market cap. The recent <a href="https://www.smartkarma.com/entities/stock-exchange-of-thailand-set-50-index" target="_blank" data-smartkarma-citation="entities:31493:1" rel="noopener">SET50 INDEX</a> inclusion has set the stock on fire.</li>
<li>The <a href="https://www.smartkarma.com/entities/delta-electronics-thai-pcl" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics Thai (DELTA TB)</a> / <a href="https://www.smartkarma.com/entities/delta-electronics-inc" target="_blank" data-smartkarma-citation="entities:12688:1" rel="noopener">Delta Electronics (2308 TT)</a> spread is very wide now, but still well within the historical highs.</li>
<li>We'd put on a placeholder position and monitor the spread for an entry once there is a clearer indication of a reversal in the spread.</li>
</ul>



Delta Electronics Thai (DELTA TB) is now the largest stock in Thailand by market cap. The recent SET50 INDEX inclusion has set the stock on fire.
The Delta Electronics Thai (DELTA TB) / Delta Electronics (2308 TT) spread is very wide now, but still well within the historical highs.
We'd put on a placeholder position and monitor the spread for an entry once there is a clearer indication of a reversal in the spread.


Delta Electronics (DELTA TB / 2308 TT): Waiting for a Reversal

Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Quality-first, Business-perspective Strategy

Thematic (Sector/Industry)

<ul>
<li>"The person that turns over the most rocks wins the game;"</li>
<li>This is why we would like to explore every corner on this planet, including places like Taiwan, in search of alpha-generating businesses;</li>
<li>Despite the scant attention among stock pickers, the region by no means lacks high-quality businesses, in our view;</li>
<li>To showcase, we list some of our top picks from a quality perspective (meaning no consideration of the current valuation).</li>
</ul>


"The person that turns over the most rocks wins the game;"
This is why we would like to explore every corner on this planet, including places like Taiwan, in search of alpha-generating businesses;
Despite the scant attention among stock pickers, the region by no means lacks high-quality businesses, in our view;
To showcase, we list some of our top picks from a quality perspective (meaning no consideration of the current valuation).


Taiwan

Voltronic Power Technology Corp. designs and manufactures uninterruptible power supply products, inverters, multiple surface mounted devices and other power products. . The Company offers its products to customers around the world.

Voltronic Power Technology (6409 TT)

Taiwan: Underowned, Yet Gaining on Peers

Taiwan hits record levels of exposure among actively managed Global equity funds, yet it still lags behind its counterparts in the USA and Europe.

Steven Holden

Voltronic Power: Rising Up the Ranks

Ownership levels in Voltronic Power Technology rise to record levels as EM funds open new positions. It now stands as the 7th most overweighted...

Steven Holden

Record Fund Ownership in Six Taiwanese Companies

Delta Electronics and Wiwynn Corp among 6 Taiwan stocks at their highest levels of fund ownership among active Emerging Market funds.

Steven Holden

Delta Electronics (DELTA TB / 2308 TT): Waiting for a Reversal

The DELTA TB / 2308 TT spread has widened significantly but there is a risk of a further blow out in the price ratio. We'd monitor the trade and...

Brian Freitas

Three Quality Picks From Taiwan

"The person that turns over the most rocks wins the game." This is why we would like to explore every corner on this planet, including places like...

Steven Chen