In today’s briefing:
- MarketVector Vietnam Local Index Rebalance: One Add, Capping & Float Changes
- Korea Small Cap Gem #36: FnGuide [Increasing Moat for Its Index Business]
- Relative Value Roundup: Performance Recap of Financial Pair Trades
MarketVector Vietnam Local Index Rebalance: One Add, Capping & Float Changes
- BAF Viet Nam Agriculture JSC (BAF VN) will be added to the MarketVector Vietnam Local Index at the close on 20 June.
- Estimated one-way turnover is 9% and that results in a round-trip trade of US$74m. There are 5 stocks with more than 1x ADV to trade from passives.
- Vingroup Jsc (VIC VN) and Vinhomes (VHM VN) stock prices have soared over the last few months and capping results in selling at this rebalance.
Korea Small Cap Gem #36: FnGuide [Increasing Moat for Its Index Business]
- FnGuide has been able to capitalize on its excellent brand name in the financial industry (especially for research used in equity trading) to profitably expand into the index development business.
- Although the index business accounted for 25% of its sales in 2024, it has been the fastest growing business in the past six years.
- Valuations are reasonable and it is trading at 27% below four year historical EV/EBITDA basis. We like FnGuide as a long-term investment story.
Relative Value Roundup: Performance Recap of Financial Pair Trades
- 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: Two pair trade opportunities in the Indian financial sector persist, with price ratios exceeding two standard deviations from their historical means.
- 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.
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