Monday morning links
The weakness in the Japanese yen, Subaru, TSMC, 1Q22 investor letters
The Bank of Japan has committed to buying an unlimited amount of 10-year government bonds if their yield exceeds 25 basis points, causing the Japanese yen to depreciate.
After the yen hit 130 to the US Dollar on Thursday, the yield on the 10-year government bond dropped three basis points below the limit. The drop in the government bond yield could imply that the selling pressure has abated.
The yen is cheap in terms of its purchasing power and its real effective exchange rate. And as long as the currency remains at this level or lower, certain low-margin exporters such as Subaru will see their profits rise thanks to higher margins and improved competitiveness.
($ = behind a paywall)
I wrote a report on Subaru, a Japanese automaker that is benefitting from the weak Japanese yen (7270 JP — US$11.8 billion) ($)
Compounder Fund on Taiwanese semiconductor foundry TSMC (2330 TT — US$474 billion)
(estimated reading time) ($ = behind a paywall)
I wrote a portfolio update for April 2022, with positive performance thanks to its exposure to Indonesian equities (13 mins) ($)
Aikya’s 1Q22 letter expresses bullishness on Chinese equities (9 mins)
Harding Loevner’s EM fund 1Q22 letter describes its Chinese stocks (12 pgs)
Tweedy Browne’s 1Q22 commentary on Haitian Int’l and other stocks (10 mins)
Cooper Investments’ 1Q22 letter discusses Japan’s Hoya (14 mins)
Claire Barnes’ Apollo Investments 1Q22 letter (4 mins)
Joerg Wuttke of the EU Chamber of Commerce on China’s zero-COVID policy (11 mins)
Adam Tooze on China’s growth prospects (6 mins)
Lu Ming: Is China bringing back the planned economy? (4 mins)
Yet Another Value Blog: a trick to see if a (US-listed) company is buying back shares (5 mins)
Darius Dale of 42Macro on the weakness in the Japanese yen (40 mins)
Louis-Vincent Gave on policymakers “covering their asses” (49 mins)
Kyle Bass at Hedgeye’s investing summit discussing geopolitics (53 mins)
Carson Block describes his method of short-selling (33 mins)
Dmitry Balyasny on building a multi-strategy fund (1:12 hours)
John Rachmat of Pinnacle Investments on Indonesia’s recent rally (15 mins)
Kevin Rudd: Is war with China inevitable? (42 mins)
Elizabeth Economy: What does China want? (41 mins)
Asianometry on the rise and fall of property developer Evergrande (33 mins)
(Largest new programs as % of the market cap; min market cap: US$50m)
New Ray Medicine (16.3%) (6108 HK — US$209 million)
Century City International (11.6%) (355 HK — US$146 million)
Glory Land (11.0%) (2329 HK — US$113 million)
Abbisko Cayman (10.7%) (2256 HK — US$342 million)
Mason Group (10.6%) (273 HK — US$102 million)
(Largest over past 7 days; min market cap: US$50m)
APG Securities: US$1.4 million (APG VN — US$73 million)
Truong Thanh Furniture: US$0.8 million (TTF VN — US$217 million)
Idreamsky Tech: US$0.4 million (1119 HK — US$737 million)
BPD Jawa Barat: US$0.4 million (BJBR IJ — US$1.1 billion)
LG Innotek: US$0.3 million (011070 KS — US$6.4 billion)
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