Transstock Beleggingsstrategieën -

Transstock, cross-border arbitrage, investment strategies, equity transition, dual-listed stocks, pairs trading. 1. Introduction Global equity markets have become increasingly interconnected, yet they remain fragmented by time zones, regulatory regimes, and investor sentiment. A single economic entity—such as Royal Dutch Shell or Naspers/Prosus—often issues multiple stock lines on different exchanges (A-shares, B-shares, ADRs). These "transstock" pairs are economically claims on the same underlying cash flows but frequently trade at diverging prices.

MSCI World (local currency), 60/40 stock/bond portfolio. 5. Results | Metric | Transstock Strategy | MSCI World | 60/40 Portfolio | | :--- | :--- | :--- | :--- | | Annualized Return | 11.2% | 9.4% | 7.8% | | Volatility | 9.3% | 15.2% | 8.1% | | Sharpe Ratio (Rf=2%) | 1.20 | 0.49 | 0.72 | | Maximum Drawdown | -8.1% | -24.3% | -14.2% | | Turnover (p.a.) | 340% | 15% | 25% | transstock beleggingsstrategieën

Traditional beleggingsstrategieën (investment strategies) treat each listing as a separate security. This paper argues for a paradigm shift: Transstock Beleggingsstrategieën explicitly exploit the relationship between cross-listed securities. The term "Transstock" is derived from "transactional stock" and "transnational stock," emphasizing strategies that move value across listings rather than holding a single static position. Prior work on dual-listed shares (DLS) by Froot & Dabora (1999) documented the "Siamese twin" anomalies, where price ratios deviate due to local market sentiment. More recent studies on cross-border arbitrage (Gagnon & Karolyi, 2010) show that transaction costs and short-selling constraints limit arbitrage. However, transition management literature (Fabozzi, 2018) highlights that institutional investors increasingly use "in-kind transfers" between listings to rebalance without market impact. A single economic entity—such as Royal Dutch Shell

| Strategy | Core Mechanism | Primary Risk | Typical Holding Period | | :--- | :--- | :--- | :--- | | | Long undervalued listing, short overvalued listing of same firm | Regulatory change (e.g., delisting) | Days to weeks | | Synthetic Equity Transition | Gradually swap one listing for another using algorithmic execution | Execution slippage | Hours to days | | Geopolitical Hedging | Maintain exposure to a sector via a transstock pair to offset country-specific risk | Currency mismatch | Months | 3.1 Regulatory Arbitrage Transstock Exploits price gaps caused by index inclusion rules or tax treatments (e.g., withholding tax differences on Swiss vs. UK listings). 3.2 Synthetic Equity Transition Designed for fund managers who wish to change their benchmark exposure without trading the underlying economy. Example: Selling a German-listed ADR and buying the Frankfurt native share while hedging currency. 3.3 Geopolitical Hedging A long-short pair where the investor goes long on a Chinese H-share and short on the same firm’s US-listed ADR to neutralize company-specific risk while betting on a narrowing of the geopolitical discount. 4. Methodology Data Sample: Daily closing prices for 25 dual-listed European firms (2019–2025) from Refinitiv. Listings included London, Frankfurt, Euronext, and NYSE ADRs. and NYSE ADRs.

Our contribution is synthesizing these fields into a unified Transstock framework, emphasizing dynamic hedging and partial transition rather than full arbitrage closure. We identify three primary strategies: