Home2020-06-01T11:13:22+08:00
3Jun

Activism may be poised for a rebound

By |3 June 2022|Categories: Thought leadership|

We looked at the Factset SharkWatch database, which tracks global activism campaigns for the last ten years. The dataset initially covered only US campaigns but in recent years has improved its non-US coverage to the extent that we believe it now provides meaningful statistics for Asia-Pacific. (more…)

15Dec

Metrica calls for a strategic review at SK Chemicals

By |15 December 2021|Categories: Open letters|

  • Metrica welcomes the recent value-improving initiatives announced by SK Chemicals.
  • However, these measures have had only a very limited impact on the share price discount, which still exceeds 80%.
  • Metrica calls for SK Chemicals to launch a formal strategic review within the next two months to consider further measures to address the discount, up to and including a sale or spin-off of SK Bioscience.

Please refer to the dedicated website for more information.

8Sep

Metrica Partners urges SK Chemicals to sell SK Bioscience shares upon the lockup expiry

By |8 September 2021|Categories: Open letters|

  • The board of SK Chemicals seems unconcerned with its shares trading at an 83% discount to net asset value. In Metrica’s view, the board has a fiduciary duty to care about its share price.
  • The company should address the discount by selling a stake in its subsidiary SK Bioscience upon the IPO lock-up expiry of 18 September and distributing the proceeds to shareholders.
  • SK Chemicals can pay a special dividend of 1.3x its share price while still retaining 50% ownership in SK Bioscience as well as 100% ownership of its profitable chemical and pharmaceutical businesses.

For more details, please refer to the dedicated website.

4Aug

It’s not too late

By |4 August 2021|Categories: Thought leadership|

In November we identified a possible turning point in the under-performance of value, based on a sharp spike in the volatility of the Asia-Pacific Value/ Growth ratio, which resembled a similar event in the year 2000. The previous occasion marked the start of a long period of value out-performance.

This is important because a repeat outcome this time should be very positive for RV strategies, which naturally have a long value factor bias.

The key driver back in November was the emergence of data pointing to higher inflation. Inflation is typically negative for growth relative to value, as growth stocks are long-duration assets which are naturally more exposed to long-term rates.

Since November, the performance of Metrica’s relative value strategies has been consistently positive, suggesting that the turning point thesis is valid.

So now that we are in August, a frequent question from investors is: is it too late to take advantage of this trend?

We don’t think so for the following reasons:

(more…)

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