STRATEGY

Growth-as-a-Service™︎| empowering industrial game changers

Basic Strategy

HITSERIES FUND is operated in Singapore and Hongkong. The basic strategy is global macro and fundamental value/growth investment with event driven arbitrage.

Global Macro

watch supernation economics, equity, comodities and other alternatives. Size, Return, Liquidity. Ranging from startups to large cap.

Fundamental Analysis

Basic principle stands on fundamentals such as EPS, BPS, FCF and historical performance.

Event Driven

in the inntial growth stage or turnaround stage of the company. Predict biggest players behavior and find market inefficiency and price gap between outstanding price and intrinsic value.

Global macro

reserve currency, now USD, former British Pound is the biggest market in all asset class

Key economic indicator

Fed Funds Rate
Fed Reserve Target
Bank Prime Rate
Federal Open Market Committee (FOMC) Meetings
Inflationi indicators;
Consumer Price Index (CPI) 
Personal consumption expenditures index(PCE)/core PCE
Industrial Production Index
Services Purchasing Managers Index (PMI)
Manufacturing PMI
Producer Price Index (PPI)
Consumer Price Index(CPI)
Current Employment Statistics(CES)

Bonds Yield

US short term Treasury
10 year Treasury
20 year Treasury

Index Correlation

USD,EUR,RMB,GBP,JPY
Commodity(oil,gold, silver)
S&P500
Dow Jones
NASDAQ100
Russel2000
CSI500(China)
HSI(HONGKONG)
NIKKEI(JAPAN)
FTSE100
DAX
bitcoin/ethereum

Long term Treasury yield correlation

10 year yield up

When 10 year US Treasury is sold, its price goes down. Yield goes up. Morgage interest goes up and discourage consumers that make 70% of GDP. Corporate capital cost goes up and the anticipation of rising income make stock lower.

10 year yield down

When 10 year US Treasury is bought, its price goes up. Yield goes down. Morgage interest goes down and stimulate consumers that make 70% of GDP. Corporate capital cost goes down and the speculation of rising income make stock higher.

The young man knows the rules, the old man knows exceptions.

Event driven arbitrage

The term “Jewish Treasury Bills” is named after Benjamin Greaham and Warren Buffet, Charlie Munger strategy to buy event driven arbitrage when merger, downturn. Which was used for CocaCola, Activision Breazer, Daily Journal.

Here we introduce some of events that made us large profit.

Covid-19 Pandemic

30 January 2020 – 5 May 2023

Russian invasion of Ukraine

Feb 2022-

US China tech sunction

2018-
All US hedge funds and private equity draw China investment due to political reason. Berkshire Hathaway sold BYD, Softbank sold Alibaba

2023 US debt ceiling crisis
THE SILICON VALLEY BANK COLLAPSE

Mar 2023

China’s top-selling developer Collapse

2021 Evergrande
2023 CountryGarden

Supplichain change by innovation

EV, renewable energy, generative AI, robo taxi

Merger Arbitrage

Arbitrage among M&A or carveout IPO

A/H premium discount arbitrage

arbitrage between China A share and Hongkong H share premium/discount among stock price and dividend

Liquidity and leverage

there is constraints in economic growth. The biggest players income growth is capped at 19%

Liquidation

Asset liquidation is one of the most important  value measurement of asset class

Leverage

Limited principal, optimal leverage

utilize Intelligence tools

Bloomberg
Morning star
Fintel
Finbox
Caixin
SCMP

utilize bankers, market makers

HSBC
UBS
SocieteGeneral
Goldmansachs
JP morgan
IMC

Performance

Here is some performance of us

Performance/size TANAAKK K.K.(Japan)

FY2013 started by US$10,000(1,000,000JPY)
FY2023 TANAAKK equity comes around US$50 million (5,000 times/500,000% capital gain)

Performance/size HITSERIES FUND (Singapore)

FY 2023 Carve-out from TANAAKK K.K., started by US$0.7 million(100,000,000JPY)

Asset class

We are viewing and culculating the world by size and liquidity. Here is some asset class of us that have important input and premise.

1

Reserve currency

M0,M1,M2,M3 for major currency like USD, EUR, CNY, GBP, JPY

2

Federal interest rate

Treasury yield and federal interest rate

3

National Bond Market

The largest national bond is US Treasury which have various kind of terms and conditions. 

4

Corporate Debt Market

Debt market is more traditional than equity market. Which have solid fixed incom.

5

Commodities(mining)

Oil US$ 2 trillion(2022)
Coal $2 trillion(2022)
Steel $1.5 trillion(2022)
Cement $326.8billion(2022)
Iron ORE $283 billion(2022)
Gold $193 billion(2022)
Copper $183 billion(2022)
Alminium $153 billion(2002)
Diamond $94.96 billion(2022)
Nickel $69 billion(2022)
Zinc $31 billion(2022)
Titanium $28.59 billion(2022)
Mangan $25 billion(2022)
Graphite $23.13 billion (2022)
Sillicon $21 billion(2022)
Lead $16.74 billion(2022)
Palladium $16.5 billion(2022)
Platinum $7 billion(2022)
Lithium $ 7 billion(2022)
Cobalt $7 billion(2022)
Magnesium $4.39 billion(2022)

6

Commodities(food)

Soybeans
Maize(Coan)
Wheat
Sugarcane
Fertilizer
Rice
Coffee
Cocoa
Soy oil
Rapeseed/Canola oil
Palm oil
Sunflower oil
Olive oil

7

Commodities (Others)

Cotton
Live Cattle
Lean Hogs
Manufacturing Products
Semiconductor Products

8

Stock Market(Large Cap)

US
China
EUROPE
UK
Japan
Korea
Asia

9

Property Market

US commercial US$ 20 trillion(2022)
US residential US$ 30 trillion (2022)

10

Startups

US$ 1.8 trillion (2022)
Technology
Manufacturing
Biology/Chemical 
Pharmaceutical
Mining
Agricultural

11

Other alternatives

Bitcoin, Ethereum