Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Hong Kong market is at historically cheap valuations. So what's new?</li>
<li>Capitulation bottom in late January/early February dramatically reduced shorts and now long positioning starts.</li>
<li>China retail buying is taking a cue from China's government buying programs and SOE company directives.</li>
</ul>


Hong Kong market is at historically cheap valuations. So what's new?
Capitulation bottom in late January/early February dramatically reduced shorts and now long positioning starts.
China retail buying is taking a cue from China's government buying programs and SOE company directives.


Technically Speaking: The Early Bird Gets the Worm, China Retail Buys Hong Kong

<ul>
<li>HSI has now closed above its 3 year downtrend and is poised to advance to its next resistance level</li>
<li>International brokers finally turning more bullish on the market as the US, Europe and Japan markets turn down</li>
<li>High beta sectors are set to outperform as global investors reallocate to the cheapest AND 2nd largest tech sector in the world</li>
</ul>


HSI has now closed above its 3 year downtrend and is poised to advance to its next resistance level
International brokers finally turning more bullish on the market as the US, Europe and Japan markets turn down
High beta sectors are set to outperform as global investors reallocate to the cheapest AND 2nd largest tech sector in the world


Hong Kong: The Glass Is Half Full, Time to BUY Beta

Equity Bottom-Up

Weibo Corp operates as a social media platform for people to create, distribute and discover Chinese language contents. The Company offers users public self expression in real time with a powerful platform for social interaction, as well as content aggregation and distribution. Weibo enables its advertising and marketing customers to promote their brands and services to users.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/weibo-corp" target="_blank" data-smartkarma-citation="entities:35280:1" rel="noopener">Weibo (9898 HK)</a> is an inexpensive profitable large social media company in China</li>
<li>Weibo generates a large cash flow which it uses to pay a 9% dividend yield</li>
<li>Weibo has synergies with Alibaba's core e-commerce business and fits well within its other media company ecosystem</li>
</ul>



Weibo (9898 HK) is an inexpensive profitable large social media company in China
Weibo generates a large cash flow which it uses to pay a 9% dividend yield
Weibo has synergies with Alibaba's core e-commerce business and fits well within its other media company ecosystem


BABA's Babies: They're All Grown Now! Weibo the Twitter of China

<ul>
<li>With the BOJ's struggle to support the yen gaining traction,  the NKY and TPX both hit major resistance</li>
<li>Hong Kong finally breaches resistance with a potential move to 20k in the near term</li>
<li>Diversification opportunities are abundant with potential negative correlation between China/HK markets and US</li>
</ul>


With the BOJ's struggle to support the yen gaining traction,  the NKY and TPX both hit major resistance
Hong Kong finally breaches resistance with a potential move to 20k in the near term
Diversification opportunities are abundant with potential negative correlation between China/HK markets and US


Technically Speaking: Japan Meets Resistance and Hong Kong Finally Breaks Downtrend

<ul>
<li>The bad news is that Hong Kong will not have a V-Shaped recovery which will keep market sentiment subdued</li>
<li>The good news is that Hong Kong will not have a V-Shaped recovery which will contribute to a reduction in overall market volatility</li>
<li>After an epic bear market, Hong Kong will enter a secular bull market this year</li>
</ul>


The bad news is that Hong Kong will not have a V-Shaped recovery which will keep market sentiment subdued
The good news is that Hong Kong will not have a V-Shaped recovery which will contribute to a reduction in overall market volatility
After an epic bear market, Hong Kong will enter a secular bull market this year


Hong Kong: A Tale of Two Markets and When to Re-Enter

Asian Hedge Fund manager with more than 20 years experience managing Asian Long/Short Equity funds.  Macroeconomic top down analysis generating thematic investments which are further researched from bottom up.  Research is supplemented with advanced technical analysis.

David Mudd
Asian Hedge Fund Manager, Long Short Equity, Macro

Technically Speaking: The Early Bird Gets the Worm, China Retail Buys Hong Kong

The Southbound Stock Connect platform had the highest net inflows in March and April in more than 3 years. In April mainland investors bought a...

David Mudd

Hong Kong: The Glass Is Half Full, Time to BUY Beta

Hang Seng Tech companies are re-rating from historic low bear market valuations. Hang Seng Tech Index (HSTECH) broke short term resistance on the...

David Mudd

BABA's Babies: They're All Grown Now! Weibo the Twitter of China

Weibo is trading at low valuations and it has potential synergies with its parent Alibaba. Weibo can benefit from Alibaba's social media ecosystem...

David Mudd

Technically Speaking: Japan Meets Resistance and Hong Kong Finally Breaks Downtrend

HSI has now clearly broken its downtrend on large volume this week. Global reallocation to Hong Kong listed China shares and mainland buying...

David Mudd

Hong Kong: A Tale of Two Markets and When to Re-Enter

HSI has now broken key resistance levels or 17k (Bear Market Trend Channel), 17,300 (200 Day Moving Average) and 17,500 (Upper Bollinger Band). ...

David Mudd