Smartkarma Daily Briefs

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlight: Three pair trade opportunities across three markets and two sectors persist.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• Retirement is a key focus for BlackRock, with half of their assets being retirement related
• Recent policy changes have expanded access to workplace retirement plans in the US
• BlackRock and the Bipartisan Policy Center have co-authored a paper with recommendations to increase access to retirement plans and improve best practices for saving and investing for retirement

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Dollar decoupled from US rates and equities, investors expected to chase dollar lower
• Dollar positioning not as crowded as perceived, global holdings of US equities still large
• Unlikely for significant repatriation of Japanese foreign bond investments, focus on rebalancing rather than one-way repatriation; implications of upcoming election on Yen uncertain

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Edelweiss has executed well over the past three years led by its pivot towards fee-based model. Its asset management businesses have grown rapidly, contributing significantly to the fee income.
• The credit businesses are still struggling in terms of growth, but they have been pivoted successfully towards the co-lending model and the next couple of years could see significant growth.
• The insurance businesses are also on track to breakeven over the next couple of years in line with the management’s prior guidance.

• The free float is estimated to gradually increase from ~15% up to 30% over six months due to the lock-up expiries of Anchor Investors and pre-IPO Shareholders.
• HDB Financial Services is forecasted to be added to Global All-World in December 2025 following the lock-up expiry of the Anchor Investors.
• HDB Financial Services has a chance of inclusion in Global Standard in February 2026 following the lock-up expiry of pre-IPO shareholders which can increase free float up to 30%.

• Nesco reported a weak Q4FY25 led by weak performance in the exhibition segment (“BEC”). Revenue in the BEC segment was down -25% YoY and -30% QoQ.
• On the other hand, the IT Parks segment performed strong. IT Parks segment’s Q4FY25 revenue grew 2% QoQ and 15%+ YoY, led by improved occupancy and rise in rental rates.
• Typically, the Foods business is linked to the BEC business. However, in Q4FY25, despite weak BEC revenues, the Foods business did well led by the catering business.

• Nuvama Wealth Management (“Nuvama”) has consistently outperformed expectations throughout FY25 and Q4FY25 was no exception. In particular, the Asset Services sub-segment has been the outlier.
• The Wealth Management and Asset Management segments continued to perform steadily providing resilience to the platform, despite cyclicality. They saw net inflows despite challenging market conditions during 2HFY25. 
• Due to market volatility, certain pockets of the investment bank and institutional equities sub-segments saw somewhat muted performance, however, Nuvama fared much better relative to its peers.

• YORKU units trade at $11, with each unit including common stock backed by a $10/share trust value and one-third of a warrant.
• Yorkville Advisors, tied to Trump-related ventures, sponsors YORKU, with a 25% stake and a $150m IPO size.
• YORKU targets telecom, media, and digital assets sectors, with management linked to Trump Media and potential speculative opportunities.

• Institutions were net sellers of Singapore stocks with a S$248 million outflow, led by STI banks’ S$2.73 billion outflow.
• United Overseas Bank, DBS Group Holdings, and Oversea-Chinese Banking Corporation led share buybacks, totaling S$69.7 million in consideration.
• Q & M Dental Group CEO Ng Chin Siau increased his interest to 55.78%, acquiring 7,041,300 shares via Quan Min Holdings.

• Cantor Equity Partners III (CAEP) added to tracking portfolio, trading at $10.50/share, 5% premium to trust value.
• Nektar Therapeutics (NKTR) stock rose 150% on positive phase 2b trial data for atopic dermatitis treatment Rezpeg.
• SmartPay Holdings (SMP:AX) definitive agreement to be acquired by Shift4 Payments at NZ$1.20/share, 7% spread remains.