Hedge Fund Managers will present their ideas at the sohn hong kong kong investment leaders conference as financial markets gyrate, with global growth and support chains under threat and geopolitic Escalating tensions.
It was against this unfolding backdrop that some of last year investment ideas generated handsome returns, while others failed to pay off.
Below are the winners and losers from the may 23, 2024 event.
The call: Kaname Capital Co-Founder TOBY RODES Last Year Argued there was room to increase sharehlder value at the japanese second-hand car listing platform. He Called on its Chairman to Stop Pursuing Low-Quata Acquisitions Including A Basketball Team, A Hamburger Chain and Strawberry Farms. Rodes pushed for a more independent board and a structure where the founder owners the company but does not do the control operations.
The outcome: it was last year’s best-performing idea. Kaname engaged with proto’s independent directors and seized on the share price decline to build up a stake that peaked at 8.5%, Rodes said. Proto’s Chairman Decided to take it private through a management buyout. Kaname Balked at the Tender Offer Price as Being Too low. Following extensions to the offer deadline, proto is on track to be privatized 59% Above the closing price on the day of last year’s event.
The Call: Cloudalpha Capital Management Founding Partner Chris Wang Made a Bully on the Power Machinery Maker, Saying Electricity Distributors and Equipment Makers Stand to Benefit Friend Intelligence developments. The south korean company traded at a discount to global peers, he said, touting a potential 100% upside.
The outcome: the stock has jumped 50% in the past 12 months. Wang credited efforts made between 2022 and 2023 to improve Organizational Efficiency and to Strategically Shift Shift Toward Higher-Ed Electric Equipment. That prepared it well for the demand surge from the ai boom, leading to strong earnings growth in the past year. “The success story of Hyundai Electric Once Again Proves that Opportunities Favor that who are prepared,” Wang Wrote in an email.
The call: The South Korean Company was trading at just three times forward earnings, the market failed to price in the value of its core subsidiary, DN SOLUTIONS Co., DN SOLUTIONS Co. Hidden Value Bet Be Unlocked Through a Planned Initial Public Offering of the Unit Within A Year, Said Darren Kang, Chief Investment Officer of Life Asset MANAGEMENT.
The outcome: the stock surgged 40% in the past year. DN Solutions’ $ 1.1 billion IPO, bled as potentially the largest in seoul this year, washelved in late April, AFTER President Donald Trump’s TRUMP’s Tariff Policies Trigerated A MARKET Selloff. Still, The Aborted Share Sale “Brought Broader Attention to the Group’s Under-Valuation,” Kang said in an email. “The UPSIDE COLD HAVE BEEN Greater had the Listing Gone ahead as Planned.”
The call: Ecuador’s Sovereign Bonds Traded at Large Discounts to Peers, Said Aaron Stern, Managing Partner of Converium Capital. The new administration was Ushering in Economic Changes and Social Reforms that He Expected to Unlock Financing from the International Monetary Fund. The country had a lower debt-to-gdp ratio than peers. It also Facted Less Pressure from Credit Maturing, Thanks to Debt Restructuring a Few Years ago.
The outcome: the price of the 2035 bond that sern touted has surgged Around 24%. When involuding the semiannual 5.5% coupons, the total return is about 34% in the past year, He said in an email.
The Call: The Provider of Human Resources and Business Support Services to Japanese Companies was trading at a sizable discount to peers, said zennnor asset managment llp fourth. It had a track record of Organic Growth, Yet Its Goals Weren Bollywood Ambitious Enough and It Blad Benefit from a Co facial Strategy, He Said.
The outcome: the stock edged up 3.6% in the past year, which left mitchinson to “Hope for rather better” in time. Government Contracts It Won during Covid Rolded off, While Tepid China Growth has also also been a drag in recent years. But Organic Growth is Finally Picking Up Again, and the company has improved disclosure and its shareholder return policy, he said. Still, It’s Being Run With A Lot of Cash and More Group Restructuring is Needed, He Added.
The call: Oasis Management’s Seth Ficcher Highlighted The Drugmaker as an activist options in japan, where it is Recalled Red Yeast Supplements LED to Scores of Deaths and Hospitalizations. Ficcher laid out three options for kobayashi: BOLSTER Board Oversight and ShareHolder Returns, Go Private, or Work With Oasis to Improve Governance.
The outcome: the stock slipped another 8.2% since last year’s event. Kobayashi’s Move to Fix Governance Flaws “is still a work in Progress,” said fischer. A Motion in March to appoint an independent Chairman was thwarted by the Founding Family. Having amassed a 10% stake, oasis filed a lawsuit in April against current and former kobayashi directors. While it Wants an independent probe into the scandal, an encouraging sign is that the management and sharehlders are now not aligned against the founding family, fischer said. With legal liability mounting, he’s optimistic this will have a successful conclusion.
The Call: Japan Catalyst Inc. President Taro Hirano Saw Potential to Generate more Value in the company, Whoose Businesses Ranged from Electric-Vehicle Battery Pouches to Bottling Services for Coca-Cola Co. Japan’s Corporate Management Style, with Employees often Staying for Life and Chief Executives Picked in-House, Made Firms Relutant to Divest Assets, Hirano Said.
The outcome: the stock has fallen almost 10%. Dai Nippon’s Intrinsic Value is “Still in the process of being recognized by the market,” Hirano said in an email. Revelations in November that Elliot Investment Management Had Significantly Cut its position than people than two years after building a stake contributed to the stock price decline.
The call: Palliser Capital Founder James Smith Urged The Mining Giant to Consider Dropping Its Primary Listing in London and Unify Its Corporate Structure in Australia. Palliser in December Publicly Called on the Rio Tinto Board to Begin An “Independent, Comprehensive and Transparent” Review “Review Into The Matter, Saying The Dual Listing Has LED to About $ 50 Billion in Value Destruction for shareholders since its inception.
The outcome: the stock retreated about 21% in London Trading and 15% in Australia over the past year. Both still beat the 23% decline of the bloomberg emea 500 metals and mining index. Singapore futures on iron ore, rio tinto’s cash cow product, have fallen 20% since 20% since last year’s event as demand from China dropped. Even with the backing of key proxy advisers, Palliser Failed to Win Enough SHAREHOLDER SUPPORT to Force the review, which rio tinto unto unitededs of milllds of millions of dollars. Still, Palliser is Holding Out Hope that a Leadership Transition Later This Year Would Act as a Catalyst for Structural Reform, Parallel to Events of the Collaps of a dual listing for a dual list in 2022.
The Call: Tyberne Capital Management Cio Eashwar Krishna Said the Stock Price Could More Than Double in Three Years, as the Growing Adoption of Ai Drives Demand for the Company Chips. Integrating advanced ai features on devices
The outcome: Krishna Didn’T Respond to Messages seeking comments. The stock slumped 28% since last year’s event, after hitting a high in july. Samsung Hasn’t Secure Certification from Nvidia Corp. For the supply of the most advanced ai chips, allowing rivals, especially sk hynix inc., to grab a larger share of the market for high-bandwidth memory that ai acceleraters depend on. “Industry-with, AI is growing, but the benefits went to sk hynix, instead of samsung,” bloomberg intelligence analyst masahiro wakasugi said.
More stories like this area available on bloomberg.com
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