In today’s briefing:
- HS Holdings (8699 JP): Khan Bank IPO Delayed but Path Clear
- Yield Comparisons Across ETH Based Protocols
- Diamond Hill Long-Short Fund 2022 Market Commentary
- Diamond Hill All Cap Select Fund Q1 2022 Market Commentary
- Diamond Hill International Fund 2022 Market Commentary
- This Week in Crypto – Big Milestone for ETH
HS Holdings (8699 JP): Khan Bank IPO Delayed but Path Clear
- The saga that has been the Sawada now HS Holdings (8699 JP) effective control change and change in Mongolian Banking Law has been interesting but the end game is clear.
- Last week, the Mongolian parliament extended the listing deadline for the top 5 Mongolian banks from June 2022 to June 2023. The IPO has been pushed back. Which is good.
- The stock is not what people think it is, and the implied PBR and PER of Khan Bank exposure on a cash-adjusted basis is VERY low.
Yield Comparisons Across ETH Based Protocols
- We compare the yields in some Ethereum based protocols and figure out what an effective USD denominated yield would be, which is more relevant for most investors.
- On Curve and Convex, the ETH-stETH liquidity pool can pay liquidity providers (APY) close to 10% in USD terms which appears attractive.
- However, this reflects systematic liquidity concerns among major trading crypto firms and could be a canary in the coal mine for the crypto space.
Diamond Hill Long-Short Fund 2022 Market Commentary
- Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment.
- The Diamond Hill Long-Short Fund’s returns were just about flat—slightly positive— in Q1.
- After a strong rebound in 2021, global GDP growth is expected to moderate in 2022.
- From current levels, equity market returns over the next five years are likely to be below historical averages.
Diamond Hill All Cap Select Fund Q1 2022 Market Commentary
- Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment.
- During a volatile quarter, the Diamond Hill All Cap Select Fund held up meaningfully better than the Russell 3000 Index.
- After a strong rebound in 2021, global GDP growth is expected to moderate in 2022.
- While the year-to-date pullback in equity markets has created some investment opportunities, broad market valuations remain above historical averages.
Diamond Hill International Fund 2022 Market Commentary
- Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment.
- During a volatile quarter, the portfolio held up better than the Morningstar Global Markets ex-US Index by a decent margin.
- After a strong rebound in 2021, global GDP growth is expected to moderate in 2022.
- We expect to see varying states of economic growth aroundthe world in 2022 and believe persistent inflation will be one of the mostcritical risk factors economies face this year.
This Week in Crypto – Big Milestone for ETH
- Ethereum Testnet Successfully Moves to PoS on June 8 – Ropsten, Ethereum’s oldest testnet, has successfully competed its transition to proof of stake — as one of the final tests ahead of the merge on the main Ethereum blockchain, which is expected for August or September 2022 and will substantially reduce net ETH issuance and electricity usage after it is complete on ETH mainnet.
- Bi-Partisan Digital Asset Bill Introduced to the U.S. Senate – Senator Cynthia Lummis (Wyo.) has introduced a major new bill called the Responsible Financial Innovation Act to expand the purview of the CFTC within the digital asset industry. See the thread of the week explaining the bill below.
- US Probes Binance Over Token That Is Now World’s Fifth Largest – US regulators are investigating whether Binance Holdings Ltd. broke securities rules by selling digital tokens just as the crypto exchange was getting off the ground five years ago.
Before it’s here, it’s on Smartkarma
