Morgan Stanley-Asia Quantitative Strategy Positions of Active Long-only Ma...-110016592

Investment Rating - The report indicates a positive investment rating for Financials, while Semiconductors and Semiconductor Equipment have been trimmed to an overweight (OW) position of +3.0% [1][3]. Core Insights - Active GEM funds experienced a significant outflow of US$2.2 billion, contrasting with a US$254 million inflow into GEM passive products [1]. - India has surpassed China as the largest market in active portfolios, while China has become the largest underweight (UW) market, replacing Saudi Arabia [2]. - The most bought stocks include Hon Hai Precision, Meituan, and ITC, while the most sold stocks are TSMC, Alibaba, and SK Hynix [2]. Summary by Sections Active Manager Positioning - Active managers have reduced their overweight positions in Semiconductors and Semiconductor Equipment, while increasing their exposure to Financials [2][3]. - Brazil is now the largest overweight market, with funds reducing exposure to Taiwan, China, and India, as well as Mexico [3]. Sector Analysis - In Japan, active managers have added to Materials, which is now the most crowded sector, while trimming their overweight positions in Tech Hardware & Equipment [2]. - Hedge fund managers have covered shorts in Energy and Real Estate, while increasing shorts in Communication Services and Information Technology [4]. Top Holdings - The top holdings among long-only EM active managers include Taiwan Semiconductor Manufacturing (11.4%), Samsung Electronics (5.7%), and Tencent Holdings (5.1%) [6]. - Notable changes in QTD include a decrease in active weight for TSMC and Alibaba, while Hon Hai Precision has seen an increase [6].