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)

Equity Bottom-Up

<ul>
<li>The Hong Kong Alpha simulated portfolio returned 0.97% in March outperforming its benchmark by 1.1%.  Since inception the portfolio has outperformed Hong Kong indexes by 8% to 11%.</li>
<li>The portfolio has generated alpha while maintaining a correlation of 0.8 and a beta of 1.05.  The HK Alpha portfolio has a Sharpe ratio of 2.19 YTD.</li>
<li>On 3/31/25 we sold <a href="https://www.smartkarma.com/entities/shanghai-electric-group-company-limited-d542164d-4d5a-4ce0-b33e-5fe6bc34722c" target="_blank" data-smartkarma-citation="entities:8777:1" rel="noopener">Shanghai Electric Group Company (2727 HK)</a> , <a href="https://www.smartkarma.com/entities/citic-securities-h" target="_blank" data-smartkarma-citation="entities:463:1" rel="noopener">Citic Securities (H) (6030 HK)</a> , <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> , and <a href="https://www.smartkarma.com/entities/sunny-optical-technology-group" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical Technology Group (2382 HK)</a></li>
</ul>


The Hong Kong Alpha simulated portfolio returned 0.97% in March outperforming its benchmark by 1.1%.  Since inception the portfolio has outperformed Hong Kong indexes by 8% to 11%.
The portfolio has generated alpha while maintaining a correlation of 0.8 and a beta of 1.05.  The HK Alpha portfolio has a Sharpe ratio of 2.19 YTD.
On 3/31/25 we sold Shanghai Electric Group Company (2727 HK) , Citic Securities (H) (6030 HK) , Sands China (1928 HK) , and Sunny Optical Technology Group (2382 HK)


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>After reducing the IPO price, and the placement size, <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a> has now completed the spin-off of <a href="https://www.smartkarma.com/entities/smithfield-foods-inc" target="_blank" data-smartkarma-citation="entities:44251:1" rel="noopener">Smithfield Foods (SFD US)</a>.</li>
<li>Preceding my comments on the WH Group are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


After reducing the IPO price, and the placement size, WH Group (288 HK) has now completed the spin-off of Smithfield Foods (SFD US).
Preceding my comments on the WH Group are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: WH Group (288 HK) IPOs Smithfield (SFD US). Now What?

<ul>
<li>On the 21st January 2025, <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a>, the world's largest pork producer, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0121/2025012100994.pdf" target="_blank" rel="noopener">announced</a> Smithfield had made a public filing of the "Preliminary Prospectus" with the SEC.</li>
<li>A US$23-US$27/share indicative price range backed out a possible market cap for Smithfield of US$9.0bn-US$10.6bn, at the high end of my estimate, and more than twice its 2013 privatisation value. </li>
<li>
Reportedly,  WHG are now guiding that Smithfield is likely to be priced at $20/share. Expect WHG to sell off here.</li>
</ul>


On the 21st January 2025, WH Group (288 HK), the world's largest pork producer, announced Smithfield had made a public filing of the "Preliminary Prospectus" with the SEC.
A US$23-US$27/share indicative price range backed out a possible market cap for Smithfield of US$9.0bn-US$10.6bn, at the high end of my estimate, and more than twice its 2013 privatisation value. 

Reportedly,  WHG are now guiding that Smithfield is likely to be priced at $20/share. Expect WHG to sell off here.


WH Group (288 HK) Is Stretched As Smithfield Mulls IPO Price Reduction

<ul>
<li>On 17 November 2024, <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a>  <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1117/2024111700031.pdf" target="_blank" rel="noopener">announced</a> an EGM to approve the spin-off and separately list subsidiary Smithfield Foods on the NYSE or NASDAQ. </li>
<li>WHG, the world's largest pork producer, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1206/2024120601148.pdf" target="_blank" rel="noopener">announced</a> on the 6th December the spin-off overwhelmingly gained shareholder approval. </li>
<li>Yesterday, the Smithfield NASDAQ <a href="https://www.sec.gov/Archives/edgar/data/91388/000162828025000470/smithfieldfoods-sx1.htm" target="_blank" rel="noopener">IPO doc</a> was made public. As per the filing: "the number and dollar amount of Smithfield Shares to be offered and sold have not been determined".</li>
</ul>


On 17 November 2024, WH Group (288 HK)  announced an EGM to approve the spin-off and separately list subsidiary Smithfield Foods on the NYSE or NASDAQ. 
WHG, the world's largest pork producer, announced on the 6th December the spin-off overwhelmingly gained shareholder approval. 
Yesterday, the Smithfield NASDAQ IPO doc was made public. As per the filing: "the number and dollar amount of Smithfield Shares to be offered and sold have not been determined".


WH Group (288 HK): Smithfield's IPO Doc Now Out

Hong Kong

WH Group Limited operates as a holdings company. The Company, through its subsidiaries, provides meat processing services, supplies chilled meat, meat products, and other related products.

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WH Group (288 HK)

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

HONG KONG ALPHA PORTFOLIO (March 2025)

The Hong Kong Alpha portfolio returned 0.97% in March outperforming its benchmark by 1.1%. Since inception the portfolio has outperformed Hong...

David Mudd

StubWorld: WH Group (288 HK) IPOs Smithfield (SFD US). Now What?

For a cross border holdco, with a material, somewhat difficult to short, PRC-listed sub; in tandem with a second material sub, with an exchange...

David Blennerhassett

WH Group (288 HK) Is Stretched As Smithfield Mulls IPO Price Reduction

A US$10bn market cap for Smithfield was punchy. Reportedly, the feedback from investors think likewise. Dumbing down the bottom end of the price...

David Blennerhassett

WH Group (288 HK): Smithfield's IPO Doc Now Out

WHG could surprise the market with a higher than expected IPO price. I doubt it. Even applying a high-end value for Smithfield of ~US$10bn, a ~38%...

David Blennerhassett

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