Latest news with #CarsonBlock
Arabian Post
3 days ago
- Business
- Arabian Post
Analysts in India Redefine Equity Strategy Edge
Foreign institutional investor activity has slowed, but India's equity market is gaining a new level of sophistication thanks to the rapid emergence of long‑short strategies among domestic analysts. With regulatory approval of the Specialised Investment Fund route and increasing recognition of sell‑side research, analysts in India are setting new standards, outperforming peers in major global markets. At the centre of this shift are flagship long‑short funds, enabled by an April amendment that allowed mutual funds to engage in both long and short equity positions via the SIF framework. Industry leaders such as ICICI Prudential, SBI, Quant and ITI Mutual Funds are among the first to roll out these products. This structural innovation, viewed by asset managers as a game‑changer, allows strategic hedging and enhanced alpha generation in volatile conditions. Jatinder Pal Singh, CEO of ITI Mutual Fund, identifies the move as a watershed moment: 'We see a lot of potential in this category similar to what we have seen in alternative investment funds…'. Quantitative and hedge fund entrants—AlphaGrep, Abakkus and Carnelian—are also applying for SIF licences, signalling a rising tide of systematic strategies. ADVERTISEMENT The surge in long-short offerings emerges against a backdrop of changing investor sentiment and derivative market structures. While proprietary traders and retail continue to dominate derivatives trading—accounting for 52.3% and 33.6% respectively—domestic institutional participation remains minimal at just 0.2%. The launch of these funds is expected to usher in broader institutional adoption, reducing reliance on speculative flows. Simultaneously, foreign players are reassessing their exposure. Citigroup downgraded Indian equities to 'neutral' citing stretched valuations and slower earnings growth. Bank of America has flagged valuation concerns as part of seven headwinds to near‑term market performance, though it remains bullish on India's long‑run structural strengths. Morgan Stanley echoes this optimism, describing the market as undervalued and promising for patient investors. At the nexus of these developments, sell‑side analysts play a pivotal role. Their long‑short models provide more nuanced insights, enabling differentiated strategies compared to conventional long‑only approaches. This evolution mirrors practices in advanced markets, where close analyst coverage is integral to informed decision‑making. International observers are taking note. Carson Block, known for his critical research into Chinese markets, is considering launching a long‑short or long‑only fund in India, citing opportunities in corporate transparency and leveraging tax-friendly jurisdictions like GIFT City. His interest signals growing confidence in the depth and potential of India's equity ecosystem. The broader equities landscape reflects these shifts. Foreign institutional investors are ramping up bearish positions in derivatives, signalling caution amid valuation concerns and global uncertainties. Concurrently, new equity supply is expanding, with a surge in IPOs and share sales reflecting a 14% rise in benchmark indices over the preceding six months. Analysts warn that without strong institutional demand, this wave may trigger volatility. ADVERTISEMENT Experts argue the timing could not be better for long‑short funds. As valuations plateau and geopolitical uncertainty remains — including Middle East tensions affecting crude prices — the ability to manage risk through hedging becomes decisive. Fund managers are betting that structured strategies will better manage these headwinds. At the same time, India's growing affluent class—from double‑digit income growth to rising equity allocation—adds tailwinds. Wealth managers like 360 One are expanding advisory services amid rising assets under management, reflecting the country's broader push toward financial sophistication. The development of long‑short funds aligns with these trends, offering differentiated solutions to high‑net‑worth investors seeking yield in uncertain markets. Yet challenges remain. Institutional engagement in derivatives must scale meaningfully to support product viability. Regulators and market infrastructure will need to adapt, ensuring transparency and risk‑management frameworks keep pace. Moreover, investor education is critical; long‑short strategies are complex and require a clear understanding of leverage, margin risk and counterparty exposures. Nonetheless, the direction is clear: Indian equity markets are transitioning from conventional long‑only investing to embrace multi‑directional strategies, leveraging deep local research and structural innovation. With the SIF framework opening doors for long‑short funds, analysts are stepping into roles once reserved for global peers. As Citi tones down enthusiasm and global investors tread cautiously, India's analysts are sharpening tools that could redefine the domestic landscape—and perhaps export this model abroad.
Bloomberg
12-03-2025
- Business
- Bloomberg
Carson Block Says Hard to Bet Against Musk, Looking Elsewhere
Muddy Waters Capital founder and CEO Carson Block says he is still not betting against Elon Musk and Tesla on "Bloomberg Open Interest." (Source: Bloomberg)
Reuters
25-02-2025
- Business
- Reuters
Muddy Waters' Carson Block weighs India entry, may consider long-only, long-short fund
Summary Muddy Waters' Carson Block exploring India-focused fund Does not plan 'activist' short-selling in India Sees geo-political risk for India as lower than China Believes Western investors under-pricing China risk MUMBAI, Feb 25 (Reuters) - U.S. investor Carson Block is weighing plans for an India fund which could be based on a 'long-only' or 'long-short' strategy but would not look at activist short-selling in the country, he told Reuters. "The question we are asking is whether we would want to do long-short or long-only (in India)," Block said in an interview in Mumbai. "But we wouldn't be doing activist short selling...I don't think that would enable us to have a successful fund management business here," he said. Block, whose Muddy Waters Research came into the spotlight for uncovering fraud at Chinese companies, is yet to finalise plans for India. Block has recently launched an investment vehicle in Vietnam after having run a long-only position in the country for a few years. Potential investors have suggested the fund look to do "something similar" in India, he said. "I could see possibly a portfolio where maybe there are 20 names on the short side, each 1 to 2 percent positions. But again, maybe the thing to do now would be long-only instead." The Indian markets have corrected sharply since October, with the benchmark BSE Sensex (.BSESN), opens new tab and NSE Nifty 50 (.NSEI), opens new tab down more than 14% from an all-time high hit in September. Fear of weaker growth, seen at a four-year low in 2024-25, has prompted foreign investors to sell $24 billion in Indian stocks between October and February so far. The short-term volatility will not sway Block's plans for India but the country's complex taxation policies could. Using India's tax-neutral zone, popularly known as GIFT City, as a route to invest is one of the options Block is considering. "But there are practical considerations there in terms of talent and basing talent in GIFT City," Block said. The Indian government is promoting the Gujarat International Finance Tec-City, or GIFT City, as a hub for global capital by offering simpler regulations and fewer taxes. CHINA VS INDIA Block, a well-known China sceptic, believes Western investors continue to underprice risk in that country's markets. Chinese equity indices have rallied in 2025, led by technology stocks. "When I look at the risks of owning shares in China, it would make me say, at best, it should be a short-term strategy to be long China," he said. Western investors are looking for a "growth narrative" and India will have its turn at being that narrative in the next few years, Block said. He sees geo-political risks in India as being lower than in China. India's Adani Group, a large infrastructure conglomerate, recently came under attack from Hindenburg Research which questioned its governance practices and disclosures. Hindenburg's allegations, denied by the group, led to a sharp fall in stock prices of listed entities within the group and prompted global investors to question governance practices across Indian companies. "Different people have expressed a range of opinions on the integrity of accounts (in India). But I'd say, like any developing market, it can be challenging compared to developed markets," said Block. "I see that the greater the challenges in transparency and the more that one would question the integrity of accounts, that presents an opportunity for us. And that's the type of place we like to be." Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
Yahoo
20-02-2025
- Business
- Yahoo
Alibaba Q3 Earnings: Revenue And EPS Beat, Eyes Global E-Commerce Profitability In FY25, Increase Investments In AI
Alibaba Group Holding Limited (NYSE:BABA) stock is trading higher Thursday after the company's fiscal third-quarter report. The Jack Ma co-founded e-commerce giant reported fiscal third-quarter 2024 revenue growth of 8% year-on-year to $38.38 billion, beating the analyst consensus estimate of $38.19 billion. Adjusted earnings per ADS of $2.93 beat the analyst consensus estimate of $2.66. Adjusted net income rose 7% Y/Y to $7 billion. Muddy Waters' Carson Block Warns Against Chinese Stocks Despite Recent Market Surge: Report Segments: Revenue from Taobao and Tmall Group grew by 5% year over year to $18.64 billion. Revenue from Alibaba International Digital Commerce Group increased by 32% year over year to $5.17 billion, driven by the growth of cross-border businesses. Local Services Group revenue grew by 12% year over year to $2.33 billion, driven by the order growth of Amap and and revenue growth from marketing services. Cainiao Smart Logistics Network Limited's revenue decreased 1% year over year to $3.87 billion due to ongoing restructurings with its e-commerce businesses taking on specific logistics platform roles. Cloud Intelligence Group revenue grew by 13% Y/Y to $4.35 billion. Digital Media and Entertainment Group rose 8% Y/Y to $745 million. All other revenue grew by 13% Y/Y at $7.28 billion. In the Taobao and Tmall Group, customer management revenue grew 9% year over year due to the growth in online GMV and improvement in take rate. Revenue from China's commerce retail business grew 5% year over year to $17.74 billion, while direct sales and other revenue declined by 9% year over year to $3.94 billion, primarily attributable to our planned reduction of certain direct sales businesses. Revenue from China's commerce wholesale business grew by 24% year over year to $901 million due to the increase in revenue from value-added services provided to paying members. Alibaba International Digital Commerce Group: International commerce retail business revenue grew by 36% year over year to $4.32 billion, primarily driven by the increase in revenue contributed by AliExpress' Choice and Trendyol. International commerce wholesale business revenue grew by 18% Y/Y to $850 million. Cloud Intelligence Group: Overall revenue, excluding Alibaba-consolidated subsidiaries, increased by 11% Y/Y, which was mainly driven by the double-digit revenue growth of public cloud products, including AI-related products. Recently, Alibaba launched its first cloud region in Mexico. As of December 31, 2024, Alibaba held $83.58 billion in cash and equivalents and generated an operating cash flow of $9.72 billion, up 10% year over year. During the quarter, it generated a free cash flow of $5.35 billion, down 31% year over year. This was mainly due to the increase in expenditure related to its investments in cloud infrastructure. Outlook: Alibaba said during the conference call that it expects its international e-commerce unit to turn profitable next fiscal year and looks to invest more in Cloud and AI over the next three years than in the past decade. Alibaba stock surged 72% in the last 12 months, buoyed by China's stimulus measures to drive the economy and as the e-commerce juggernaut's affordable AI models gained traction. Recently, Apple Inc. (NASDAQ:AAPL) tapped Alibaba to co-develop and integrate AI features into its iPhones for the Chinese market. Price Action: BABA shares traded higher by 10.50% at $139.05 premarket at the last check on Friday. Also Read:Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? ALIBABA GR HLDGS (BABA): Free Stock Analysis Report This article Alibaba Q3 Earnings: Revenue And EPS Beat, Eyes Global E-Commerce Profitability In FY25, Increase Investments In AI originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
20-02-2025
- Business
- Yahoo
Carson Block Is Looking at India Fund, Avoids China Stock Rally
(Bloomberg) -- Short seller Carson Block is heading to India to look at starting a fund focusing on the country's stocks, as he stays away from joining a rally in China's market. Why Barcelona Bought the Building That Symbolizes Its Housing Crisis Por qué Barcelona compró el edificio que simboliza su crisis inmobiliaria Trump Child Refugee Agency Shares Data With Immigration Enforcers A Filmmaker's Surreal Journey Into His Own Private Winnipeg 'India is going to be a major theme' for the finance industry, just as China was, 'so a wall of money will be thrown at India,' Block, the chief executive officer of Muddy Waters Capital LLC, said in a Bloomberg TV interview on Tuesday in Singapore. Block and his Muddy Waters business partner Freddy Brick are going to India next week on their first trip to meet brokers, funds and business people in Mumbai to understand the country's investing landscape. He is thinking of launching a long-short fund there, though is concerned over India's rules on taxing capital gains. His interest in India comes as foreigners have been selling Indian equities for most of this year, withdrawing more than $10 billion through Feb. 13 amid a tepid earnings and growth outlook. Short sellers borrow shares with the expectation of buying them back and returning them once a company's stock price has plummeted, pocketing the difference. Block's Muddy Waters firm rose to fame by uncovering fraud at some Chinese firms. He cited geopolitical risks and unreliability in corporate accounting as the key reasons to remain cautious on China. The country's equities have rallied this year as Xi Jinping's signals of support for the private sector add fuel to optimism over DeepSeek's artificial intelligence capabilities. Chinese company 'numbers cannot be trusted and then there is risk of a potential military conflict between China and Taiwan,' Block said. Block, a long-time China skeptic, warned investors about buying Chinese stocks in October. Since then the MSCI China Index has gained about 10%. --With assistance from John Cheng. The Undocumented Workers Who Helped Build Elon Musk's Texas Gigafactory Before DeepSeek Blew Up, Chatbot Arena Announced Its Arrival The Unicorn Boom Is Over, and Startups Are Getting Desperate The Startup That Stepped In When the Baby Formula Supply Chain Broke Japan Perfected 7-Eleven. Why Can't the US Get It Right? ©2025 Bloomberg L.P. Sign in to access your portfolio
