LAFDI market report - Friday 16th October

By Rupert Taylor on Friday 16 October 2015

Alternative Lending

 

Weekly return

LAFDI

-0.97%

MSCI World

0.75%

Top 5 performing Stocks in last week

1

NEWS US Equity

5.47%

2

TAXI US Equity

3.77%

3

RDL LN Equity

3.43%

4

QIWI US Equity

3.10%

5

PFG LN Equity

2.76%

Worst 5 performing Stocks in last week

1

BAS1V FH Equity

-5.80%

2

ONDK US Equity

-5.69%

3

TUNG LN Equity

-5.63%

4

SGM US Equity

-5.48%

5

CACC US Equity

-4.51%

 

* Returns are calculated for the week to local market close on Thursday.

The LAFDI endured a poor week shedding nearly 1% against a back-drop of continued recovery for global equity markets.  There may have been a certain sentiment impact from the travails of Trustbuddy AB.  Trustbuddy has ceased operations and the shares have been suspended in response to the discovery of ‘serious misconduct’ by the recently appointed new management.  Whilst we at AltFi do not believe that the problems at Trustbuddy are in any way representative of the wider marketplace lending sector it may be that there was some negative sentiment affecting the related LAFDI names this week.  Trustbuddy was once a LAFDI constituent but it failed both the mimimum market cap and daily liquidity requirements at the end quarter 1 index review and was de-selected from the index on 17th April 2015. 

NewStar Financial Inc the middle market commercial lender lead the index this week.  Whilst there was no obvious new news there is evidence to suggest that the share price is enjoying the benefit of a significant short-squeeze.  As many as 967,516 shares were on loan back on the 15th September and that number fell significantly to by the end of the month to 619,259.  The share price would suggest that this trend, fuelled by increasingly supportive broker commentary, has continued.  The company will report quarterly numbers in early November and has also recently completed its acquisition of Boston-based FOC Partners, a Credit-Oriented Investment Manager With $2.3 Billion of Assets Under Management and Authorized a New Share Repurchase Plan. 

Medallion Financial is another share price that may be enjoying the un-winding of a short position.  As of September 30th, there was short interest totalling 4,293,259 shares.  Based on an average daily volume of 807,025 shares, the days-to-cover ratio is currently 5.3 days.  In the absence of any meaningful news the shares put on 3.77% over the week.

Please note – The LAFDI is now available on Bloomberg.  Tickers:

LAFDITR GO for the Total Return Index

LAFDIPR GO for the Price Return Index

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