We are pleased to announce the Winners of SumZero's China TMT & eCommerce research challenge. These ideas are now available on the site, and carry a good deal of significance in light of the China market sell-off over the past, few weeks. We expect you'll find some compelling opportunities in the research.
For the first time, we have a two-way draw for 1st Place. The two Co-Winners were equal in every measurable way throughout the selection and judging process. We are pleased to acknowledge both ideas and their respective authors, as well as identify a single 3rd Place finisher. Please join us in congratulating them all. We also would like to thank our partner, the The Sohn Hong Kong Conference Presented by the Karen Leung Foundation, and the participation of our esteemed Judges panel.
Winners (Open Access)
1st Place (Tie): Dennis Hong (ShawSpring Partners)
Long on JD.com, Inc. (JD:US)
Buy JD.com, a business that has established and is extending the foundations to become the dominant e-commerce company in China.
Bio: Dennis Hong is the Founder and Chief Investment Officer of ShawSpring Partners. Previously, he was a Principal and founding team member (2009-2013) of Altimeter Capital Management, a travel and technology sector hedge fund based in Boston. Prior to Altimeter, Dennis was an Associate (2007-2009) at Matrix Capital Management, a global long/short equity hedge fund affiliated with venture capital firm Matrix Partners. Prior to Matrix, Dennis was a Financial Analyst (2003-2007) at the Yale University Investments Office, the entity responsible for the management of Yale University's endowment portfolio.
Access the JD:US Thesis
1st Place (Tie): Perry Tan (Black Crane Capital) & Winston Chu (Frontier Asia Capital)
Long on Zhaopin Ltd (ZPIN:US)
Top job vertical company in China with huge growth potential; backed by the most successful global operator in the form of Seek Ltd (SEK AU).
Bio(s): Perry Tan, CFA, CAIA, FRM, is a senior investment analyst at Black Crane Capital. Black Crane Capital, founded by Mr. Peter Kennan, is an Asian based investment firm focusing on deep value opportunities with a special situations angle including but not limited to distressed situations, unproductive assets, cheap assets, fallen angels, and potential corporate events such as M&A, spinoffs and friendly activism. Black Crane primarily focuses on identifying potential opportunities with asymmetric payoffs. Mr Tan was formerly an investment analyst with HT Capital Management, an equity long short Asian hedge fund based in Hong Kong. Prior to HT, Perry was an investment analyst with Barclays Asset Management. Perry is fluent in Mandarin, Cantonese and English. Perry graduated at the University of Chicago with a B.A. in Economics.
Winston Chu is an investment analyst at Frontier Asia Capital, and was formerly an analyst at HT Capital Management covering regional Asian equity markets. He focuses on an independent value-oriented research process with a bias towards technology and consumer sectors. Prior to this, Winston interned at Fidelity Investments in Hong Kong as part of the Investment Initiatives team. He graduated in 2013 with a degree in Finance and International Business from University of British Columbia.
Access the ZPIN:US Thesis
3rd Place: Adrian Warner (Avenir Capital)
Long on Clear Media Ltd (100:HK)
Clear Media trades at 5.4x 2015 EBITDA (12x for comps) yet has grown EBITDA 49% over past 4 years and ROIC from 11% in 2010 to 19% in 2014. Price target HK$17 or 80% upside.
Bio: Adrian Warner is the Managing Director and Chief Investment Officer of Avenir. Adrian has spent over 18 years in private equity investment in Australia and the US. He was most recently a Managing Director and part owner of Catalyst Investment Managers, a mid market Australian private equity firm with approx $900m FUM at December 2009. Prior to Catalyst, Adrian worked at CVC Asia Pacific, with approx US$2.8b FUM at December 2006. Adrian has also worked at Pacific Equity Partners, the largest Australian based private equity firm and AEA Investors, one of the longest standing private equity groups in the US. Prior to working in private equity, Adrian was a Management Consultant at Bain & Company, where he worked in Australia, Asia and the US. Adrian holds an MBA from Harvard Business School and a Bachelor of Commerce (First Class Honours) from the University of New South Wales in Sydney, Australia.
Access the 100:HK Thesis
Our two 1st Place Winners receive USD$5K each, an invitation to the Private Speaker's Dinner at The 2016 Sohn Hong Kong Conference Presented by the Karen Leung Foundation, a comped ticket to The Sohn Hong Kong Conference Presented by the Karen Leung Foundation (a HKD$10K value), and 1-year of access to SumZero research database. Our 3rd Place Winner gets a comped ticket to The Sohn Hong Kong Conference Presented by the Karen Leung Foundation (HKD$10K value), and 1-year of access to SumZero research database.
The conference, in partnership with the globally recognized Sohn Conference Foundation, is a must-attend event for Asia providing a forum for successful professional investors to present a market view or investment idea, allowing attendees such as sell and buy side investment professionals, asset allocators, and private investors to glean valuable insights from leaders in the field. All proceeds from the event will support the Foundations’ respective missions to save lives from gynecological and pediatric cancers by promoting research, prevention, education and optimal treatment. The 2016 conference will be held on June 1st, 2016. We encourage SumZero members to attend.
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