Director | Exposing Creative Accounting, Bucephalus Research Partnership

Robert Medd

Director | Exposing Creative Accounting

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

​Bucephalus Research Partnership:
- Is an independent fee-based research service
- Does not take proprietary positions, long or short
- Does not solicit business or fees from the corporates we review

Thematic (Sector/Industry)

<h2><strong>Introducing the Bucephalus Operating Return on Utilised Capital</strong></h2><p>We created BORUC, the Bucephalus Operating Return on Utilised Capital, to reveal the true operating performance of businesses because ‘traditional’ measures (ROE, ROCE etc.) are easy to manipulate. Struggling companies often resort to creative accounting to obscure their problems and hide their decline. This alters the numerator in ROE, ROCE etc. and disguises their investment and capex cycles.</p>

Introducing the Bucephalus Operating Return on Utilised CapitalWe created BORUC, the Bucephalus Operating Return on Utilised Capital, to reveal the true operating performance of businesses because ‘traditional’ measures (ROE, ROCE etc.) are easy to manipulate. Struggling companies often resort to creative accounting to obscure their problems and hide their decline. This alters the numerator in ROE, ROCE etc. and disguises their investment and capex cycles.

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of TWSE Stocks as of May 29th. The aggregated holding was USD2,287.1bn.</li>
<li>We estimate that foreign flows to be inflows of USD6,743mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Hon Hai Precision, Zhen Ding Technology, Nanya Technology, Powerchip Semiconductor Manufacturing, Quanta Computer.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of May 29th. The aggregated holding was USD2,287.1bn.
We estimate that foreign flows to be inflows of USD6,743mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Hon Hai Precision, Zhen Ding Technology, Nanya Technology, Powerchip Semiconductor Manufacturing, Quanta Computer.


TWSE Foreign Holding Weekly (May 29th): Hon Hai Precision, Zhen Ding Technology, Nanya Technology

<ul>
<li>We analyzed the changes in short interest of TWSE Stocks as of May 29th. The aggregated short interest was USD49.0bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Shin Kong Financial, Quanta Computer, Innolux, Delta Electronics, ASE Industrial.</li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of May 29th. The aggregated short interest was USD49.0bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Shin Kong Financial, Quanta Computer, Innolux, Delta Electronics, ASE Industrial.


TWSE Short Interest Weekly (May 29th): Shin Kong Financial, Quanta Computer, Innolux, ASE Industrial

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>There could be 4 constituent changes for the Yuanta/P-Shares Taiwan Top 50 ETF in June as AI-related stocks bump (mostly) old-economy stocks from the index. </li>
<li>Following the changes, Information Technology stocks will make up over 91% of the index with Financials next at 6.5%. The Healthcare and Consumer Discretionary sectors will have no representation.</li>
<li>Among stocks with large short interest (in terms of float), shorts have been decreasing in the forecast adds and increasing in the forecast deletes.</li>
</ul>


There could be 4 constituent changes for the Yuanta/P-Shares Taiwan Top 50 ETF in June as AI-related stocks bump (mostly) old-economy stocks from the index. 
Following the changes, Information Technology stocks will make up over 91% of the index with Financials next at 6.5%. The Healthcare and Consumer Discretionary sectors will have no representation.
Among stocks with large short interest (in terms of float), shorts have been decreasing in the forecast adds and increasing in the forecast deletes.


Taiwan Top 50 ETF Rebalance Preview: AI-Related Stocks Taking Over

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>The T50 index represents the top 50 largest stocks by market capitalization on the Taiwan Stock Exchange. The T100 index represents the next 100 largest names (51-150 ranks).</li>
<li>Today is the base date for final ranks for the June 2026 index rebal event.</li>
<li>We have presented our final expectations for ADDs/DELs for the T50 and T100 indices in this insight. There are also very important consequences for the TDIV index.</li>
</ul>


The T50 index represents the top 50 largest stocks by market capitalization on the Taiwan Stock Exchange. The T100 index represents the next 100 largest names (51-150 ranks).
Today is the base date for final ranks for the June 2026 index rebal event.
We have presented our final expectations for ADDs/DELs for the T50 and T100 indices in this insight. There are also very important consequences for the TDIV index.


Quiddity Leaderboard T50/​​​100 Jun26: TDIV DELs Rise from 3 to 4 as Anticipated; Final Expectations

Taiwan

Zhen Ding Technology Holding Ltd is a manufacturer of printed circuit board. The Company design, development, manufacture and sale of printed circuit board.

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

Zhen Ding Technology Holding (4958 TT)

Using BORUC to Pick Asian Value Stocks

Introducing the Bucephalus Operating Return on Utilised CapitalWe created BORUC, the Bucephalus Operating Return on Utilised Capital, to reveal the...

Bucephalus Research Partnership

TWSE Foreign Holding Weekly (May 29th): Hon Hai Precision, Zhen Ding Technology, Nanya Technology

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in Hon Hai Precision (2317 TT), Zhen Ding...

Ke Yan, CFA, FRM

TWSE Short Interest Weekly (May 29th): Shin Kong Financial, Quanta Computer, Innolux, ASE Industrial

We analyzed TWSE short interest report for the past week and highlighted short interest changes in Shin Kong Financial, Quanta Computer, Innolux,...

Ke Yan, CFA, FRM

Quiddity Leaderboard T50/100 Jun26: TDIV DELs Rise from 3 to 4 as Anticipated; Final Expectations

In our last insight, we flagged TDIV member Makalot Industrial (1477 TT) as being close to the T100 deletion border. It has now crossed the border...

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Using BORUC to Pick Asian Value Stocks

Introducing the Bucephalus Operating Return on Utilised CapitalWe created BORUC, the Bucephalus Operating Return on Utilised Capital, to reveal the...

Bucephalus Research Partnership

TWSE Foreign Holding Weekly (May 29th): Hon Hai Precision, Zhen Ding Technology, Nanya Technology

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in Hon Hai Precision (2317 TT), Zhen Ding...

Ke Yan, CFA, FRM

TWSE Short Interest Weekly (May 29th): Shin Kong Financial, Quanta Computer, Innolux, ASE Industrial

We analyzed TWSE short interest report for the past week and highlighted short interest changes in Shin Kong Financial, Quanta Computer, Innolux,...

Ke Yan, CFA, FRM

Taiwan Top 50 ETF Rebalance Preview: AI-Related Stocks Taking Over

There could be 4 changes for the Top50 ETF. There is big flow for the forecast adds and big impact for the forecast deletes. Some of the stocks...

Brian Freitas

Quiddity Leaderboard T50/​​​100 Jun26: TDIV DELs Rise from 3 to 4 as Anticipated; Final Expectations

In our last insight, we flagged TDIV member Makalot Industrial (1477 TT) as being close to the T100 deletion border. It has now crossed the border...

Janaghan Jeyakumar, CFA

Quiddity Leaderboard T50/100 Jun26: TDIV DELs Rise from 3 to 4 as Anticipated; Final Expectations