Sea Limited (SE) is a tech conglomerate headquartered in Singapore with a market cap of $55 billion and over 67,000 employees. Initially founded as Garena, a game development and publishing company known for its title Free Fire, the company rebranded to Sea in 2017. It now serves as a holding company for subsidiaries Garena, SeaMoney, and Shopee, as well as the Singapore Premier League football club, Home United. SE shares are a new addition to the Hypothetical SIA 5-ADR Research Strategy, which boasts a remarkable 25.87% Compound Annual Growth Rate (CAGR), gross of fees. Let's explore the strategy that drives these gains, as outlined in its stock selection process. The strategy recommends the top five relative strength names from the SIA International ADR Universe Report, promptly replacing any underperforming stocks with higher-ranked options. Each night, the SIA AI Platform conducts over a billion calculations to compare 80,000 investments, alternatives, and asset classes. This timely analysis provides actionable data that would be impossible for an individual investor to replicate. A recent example occurred on September 27th when shares of AngloGold Ashanti ADR (AU) dropped in ranking and were replaced by the top name of the day, Sea Limited (SE). As AU's relative strength and price declined, SE's began to rise, a shift detected by the SIACharts rankings. Currently, SE ranks #4 in the SIA International ADR Report, alongside Qifu Technologies (QFIN) and GDS Holdings (GDS), which were previously featured in Daily Stock Reports on October 1 and September 20, respectively. Examining the point and figure chart, we see SE's turnaround after plummeting from $350 in 2021 to $35 in early 2024—a 90% decline. Recently, shares have surged through the negative trend line, breaking past the $89 resistance level (now support). Any pullback to this level could represent a solid buying opportunity, with additional support at $76.20. SIA’s recent purchase price is noted at $94.70. Looking ahead, future resistance levels are at $117.80 and $135.31, providing ample room for growth as fund flows increasingly favor international exposure. Additionally, SE holds a perfect SMAX score of 10 out of 10, reflecting its strong position against all asset classes.
What does this tactical portfolio management achieve for SIA practitioners? Since inception, the strategy has delivered a return of 1,795% (gross of fees), compared to the benchmark ACWX's 115%, translating to a substantial CAGR of 25.87%. While there have been challenging periods—evident in the month-by-month returns and year-by-year performance table with marked drawdowns—overall, the strategy often outperforms the benchmark. The key takeaway is that when outperformance occurs, it tends to be significant, making it increasingly difficult for average benchmarks to keep pace. In summary, relative strength and concentrated positions are crucial. For more information on this methodology or how we leverage advanced automation to ensure continuous oversight of positions, please contact your SIACharts Account Managers. We’re always eager to support advisors striving to outperform the market. Don't let others tell you it is impossible as SIA witnesses these successes daily through the research rankings and strategies and through the remarkable efforts of SIA practitioners.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
