Asia Ex-Japan Funds: Extreme stocks
In this report, Steven Holden screens for stocks at the extreme ends of their positioning or momentum ranges. He synthesises current and historical data on fund positioning with recent manager activity to accurately assess sentiment for each stock within Copley’s coverage. Stocks highlighted include Phoenix Mills and SK Hynix (High Positioning, Positive Momentum); AIA Group and Shenzhen Inovance Technology Co. (High Positioning, Negative Momentum); PT Avia Avian and Wuxi Biologics (Low Positioning, Negative Momentum); New Oriental Education & Technology Group and Shinhan Financial Group (Low Positioning, Positive Momentum).
Edition: 192
- 09 August, 2024
The China Rotation: Allocations hit 4-year lows
Allocations in China & HK equities among active EM investors have plummeted 10%+ in the space of 18-months (India, Taiwan and Mexico have been the biggest beneficiaries) - on a sector level, China Industrials and Consumer Staples are the overweights, with managers rotating into Financials and away from Consumer Discretionary. On a stock level, Alibaba remains a core holding; out-of-benchmark AIA Group and Midea Group are popular, and for Value managers, China Mobile and CNOOC are key overweights. Active managers have stayed away from both NIO and Xiaomi, so pressure to invest on the grounds of benchmark tolerance should be disregarded.
Edition: 136
- 27 May, 2022
Global Funds: Investor positioning insights
EM Unwind - Allocations among active Global managers have taken an aggressive move lower led by China & HK, South Korea and Brazil.
China & HK Style Switch - Value and Yield managers have aggressively reduced underweights, whilst Growth and Aggressive Growth managers have moved to new lows. AIA Group takes the crown as the most widely held stock and largest overweight.
Asia's Communication Services Fall - Ownership breaking new lows led by Tencent, Nintendo, NetEase and Nippon Telegraph.
Energy Conviction Underweight - TotalEnergies is the most widely held stock, but there is little conviction or consensus to suggest managers are concerned over long-term outperformance of Energy vs. sector peers.
Edition: 129
- 18 February, 2022