Re-Search

Heyokha-Brothers-Investment-Report-3Q-2018

In light of the 10th anniversary of the GFC, this report covers what has changed since then. We point to the elevated debt levels and the rise of populism worsened by unequal recovery. Trade wars are a big threat beyond just the global economy. With this backdrop, we foresee structural increase in interest rates and inflation after 35 years of deflation.

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Heyokha-Brothers-Investment-Report-2Q-2018

With the US in quantitative tightening mode, EM countries suffered due to their all-time high debt levels issued in foreign currency. This resulted in a dislocation of valuations in the financial markets, which present exciting investment opportunities for long-term investors. We learned that we need to master our fear to be able to enjoy the excitement from the EM underperformance. In this quarter, we saw opportunities in live streaming and industrial gas sectors.

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Heyokha-Brothers-Investment-Report-1Q-2018

This report covers how to invest in an era where inflation is set to rise. First, we discuss four potential drivers of inflation, being quantitative tightening (surprisingly), higher production costs in China, higher oil prices, and food security issues. We then highlight what kind of companies should do well during a period of higher inflation and elaborate on BISI as an Indonesian specimen of such company. Finally, we provide an update on Indonesian agriculture, which showed signs of increased output.

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Heyokha-Brothers-Investment-Report-4Q-2017

Inspired by Netflix series Blackmirror and the book Homo Deus by Yuval Noah Harari, this report is about how technology is accelerating change and making the world less predictable for investors. Looking at China we try to see hints of the future. What we see there is the rise of fintech start-ups disrupting the banking industry, and that access to (partners with) offline presence is key to online companies that sell physical goods. We also make an introduction to blockchain technology and revisit the role of precious metals in this era of cryptocurrencies.

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Heyokha-Brothers-Investment-Report-3Q-2017

We discuss how China is advancing in the tech race and how two Chinese tech giants built their ecosystems. With the growing influence of the Chinese tech giants in SE Asian markets, we expect that local incumbents with a strong franchise and large footprint could be beneficiaries as either a partner or acquisition target of such tech ecosystems. We name Go-Jek as a potential first true Indonesian ecosystem. We also point to warning signs that innovation can drive the rise of destructive monopolies and that governments may step in to curb their power.

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Heyokha Brothers-Investment Report-2Q 2017

We note how many companies in various industries are being killed-off by innovative tech businesses. We point to the rising fund flows to index ETFs and how this passive investment trend may create more market anomalies – such as divergence in valuation of big-cap vs small-cap firms – presenting opportunities to the true active investors. We point to brick-and-mortar businesses as potential beneficiaries of the O2O trend among online retailers. Lastly, we take inventory of what has been the impact of Indonesia’s agricultural reforms so far, which seems promising.

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Heyokha Brothers-Investment Report-1Q 2017

We warn for how technology has gotten hold of us and is constantly distracting us, with detrimental effects on creativity and relationships. We then present the antidote, which is based on ancient knowledge, and suggest investors take note to free themselves from the distraction of short-term market volatility. We present four “endurance stocks” to exemplify how patience could reward investors.

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Heyokha Brothers-Investment Report-4Q 2016

We learned so much from watching the Netflix documentary series called “Chef’s Table”. Each episode of this series features the life story of a remarkable chef. Watching the paths these chefs have taken to shape their skills and philosophy made us realise that these chefs are very special people. And that it takes deep-rooted passion and extreme dedication to get to where they are. The series challenges us to adopt the same level of dedication in our own field and craft: investing.

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Heyokha Brothers-Investment Report-3Q 2016

Looking at developments around the world, it is becoming increasingly clear that the rich-poor gap is widening, and steps have to be taken before the wealth gap becomes a much more serious problem. There are investment implications, and we reiterate our major tailwind call for grassroots plays.

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Heyokha Brothers-Investment Report-2Q 2016

We wonder how deflation will finally turn into inflation and start to have some exposure to inflation plays. On a more micro level, we talk about a turnaround story for an Indonesian retailer.

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About Re-Search

Research is not a static process. The same question may have different answers over time. One should not be content with the known but keep searching for new answers again and again, or Re-search.

The latest report on this page may be password protected and exclusively available for our investors. Yet, the older reports are available to anyone.

Previously we published reports on a quarterly basis. We no longer do this and only publish a report when we feel we have something special to share.