Copley Fund Research Limited

📉 Indonesia’s Market Plunge: What Role Did Positioning Play? 📉 The Jakarta Composite Index dropped 3.7% today, triggering a rare trading halt. The rupiah weakened, bond markets fell, and investors scrambled for answers. 🔍 But some active managers moved first. Our September 2024 research flagged the shift - sentiment among active GEM funds had already begun to weaken: ✅ 2.3% of funds closed positions over the preceding 6 months ✅ 6.3% shifted to underweight ✅ Closures outpaced openings, with BlackRock and Aubrey leading the exit ✅ Bank Central Asia & Bank Rakyat hit record ownership highs earlier in 2024 - only to see funds exit soon after Yet, over 70% of funds remained overweight. This is what can happen with crowded positioning in smaller markets - when sentiment turns, liquidity can dry up fast. 📊 Chart: The slide below is from our September research deck, where we highlighted weakening sentiment in Indonesia - a trend that played out before today’s market drop, with Indonesia among the worst performers in EM since September last year. 📊 Positioning Matters While no single factor explains a market move, tracking positioning can help challenge narratives and refine investment decisions. Want to see the latest in country positioning among active GEM funds? Get in touch. 👇 #emergingmarkets #fundpositioning #indonesia #stocks #activemanagment

🌏 Global Equity Managers: Time to Look Beyond Alibaba and Tencent? With China exposure at just 2.2% of total holdings among Global Active Equity funds, the gap between US and China allocations has never been wider. Moreover, this exposure is extremely narrow, with 35% of the total China weight taken up by Alibaba, Tencent and AIA Group. Meanwhile, their Emerging Market counterparts are taking a different approach. 🚀 Contemporary Amperex Technology (CATL) 🚀 Trip com 🚀 Xiaomi Corp These three names have hit new highs in fund ownership among Global Emerging Market managers, showcasing a strategic pivot towards growth leaders beyond the usual suspects. Is it time for Global Equity managers to follow suite? Should they be taking cues from their EM peers? #GlobalEquity #EmergingMarkets #ChinaEquity #ActiveManagement #FundPositioning #CATL #Xiaomi #TripCom #ChinaTech #InvestmentTrends #PortfolioStrategy #Alibaba #Tencent

📊 𝗙𝘂𝗻𝗱 𝗣𝗼𝘀𝗶𝘁𝗶𝗼𝗻𝗶𝗻𝗴 𝗖𝗵𝗮𝗿𝘁 𝗣𝗮𝗰𝗸 𝗨𝗽𝗱𝗮𝘁𝗲 𝗮𝗯𝗿𝗱𝗻 𝗘𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 𝗙𝘂𝗻𝗱 How does their portfolio compare to active EM peers? 𝗢𝘃𝗲𝗿𝘄𝗲𝗶𝗴𝗵𝘁: India Financials, S. Korea Industrials, Samsung, Tencent, TSMC 𝗨𝗻𝗱𝗲𝗿𝘄𝗲𝗶𝗴𝗵𝘁: China & HK Financials, S. Korea Discretionary, SK Hynix, Reliance Industries 𝗚𝗹𝗼𝗯𝗮𝗹 𝗘𝗾𝘂𝗶𝘁𝘆 𝗙𝘂𝗻𝗱𝘀 – 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗗𝗶𝘀𝗽𝗲𝗿𝘀𝗶𝗼𝗻 Value funds show large allocations in Banks, while Aggressive Growth funds favor Internet and Packaged Software sectors. 𝗨𝗞 𝗘𝗾𝘂𝗶𝘁𝘆 𝗙𝘂𝗻𝗱𝘀 – 𝗦𝘁𝗼𝗰𝗸 𝗙𝗼𝗰𝘂𝘀: 𝗡𝗮𝘁𝘄𝗲𝘀𝘁 𝗚𝗿𝗼𝘂𝗽 𝗣𝗟𝗖 Average fund weights hit record highs, with 56% of funds now invested. However, momentum is slowing with closures from Threadneedle, JP Morgan, and BlackRock, among others. Download the latest pack here: https://lnkd.in/eX4AB3Bs #ActiveManagement #AssetManagement #ActiveInvesting #EmergingMarkets #FundPositioning #MarketInsights #InvestmentResearch #FinancialAnalysis#InvestmentInsights #PortfolioAnalysis #InvestmentStrategy