Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

SAMSUNG KODEX KOREA Value-Up ETF / Event-Driven

SAMSUNG KODEX KOREA Value-up ETF is an exchange-traded fund incorporated in South Korea. The objective of the fund is to achieve return that closely replicates the performance of KOREA Value-up Index. The fund invest more than 60 % in equity.

SAMSUNG KODEX KOREA Value-Up ETF (495850 KS)

<ul>
<li>They ditched the rulebook, used a market cap filter to pick the top 5, and watered down PBR and ROE, making them irrelevant. Market cap was the real deciding factor.</li>
<li>KRX hasn't confirmed it, but local sources say the special rebalancing was based on the top 50 KOSPI market caps as of the December 13th close.</li>
<li>The shift was driven by local pension funds, especially NPS, which pushed for more big-cap exposure to trigger Value-Up investments, signaling a potential ramp-up in their involvement.</li>
</ul>


They ditched the rulebook, used a market cap filter to pick the top 5, and watered down PBR and ROE, making them irrelevant. Market cap was the real deciding factor.
KRX hasn't confirmed it, but local sources say the special rebalancing was based on the top 50 KOSPI market caps as of the December 13th close.
The shift was driven by local pension funds, especially NPS, which pushed for more big-cap exposure to trigger Value-Up investments, signaling a potential ramp-up in their involvement.


Behind the Scenes of KRX Value-Up Index Special Rebalancing: What It Means for Flow Dynamics

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Posco International Corporation is a general trading company.  The Company exports and imports steel, cement, crude oil, heavy machinery, automobile parts, and textiles.  Daewoo also manufactures synthetic fabrics for footwear, garments, and car seats, and operates a department store in Masan.

Posco International Corporation (047050 KS)

<ul>
<li>Both POSCO Holdings (005490 KS) and Posco International Corporation (047050 KS) provided solid, new Corporate Value Up reports. </li>
<li>However, POSCO International's plan is much better. POSCO International plans to provide total shareholder returns of 50% which is more than double of its previous total shareholder return plan.</li>
<li>This sharp increase in shareholder returns is likely to lead to share outperformance of POSCO International relative to the market in the next several months. </li>
</ul>


Both POSCO Holdings (005490 KS) and Posco International Corporation (047050 KS) provided solid, new Corporate Value Up reports. 
However, POSCO International's plan is much better. POSCO International plans to provide total shareholder returns of 50% which is more than double of its previous total shareholder return plan.
This sharp increase in shareholder returns is likely to lead to share outperformance of POSCO International relative to the market in the next several months. 


New Corporate Value Up Plans of POSCO Holdings and POSCO International

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Korea Stock Exchange KOSPI 200 / Event-Driven

The KOSPI 200 Index is a capitalization-weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3, 1990.

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

<ul>
<li>Kospi is now off 20% from its 52-week highs. Historic vols are picking up and implieds looking like good value given market dynamics.</li>
<li>Hedging increased with broad based positioning in Puts across out-of-the-money strikes.</li>
<li>Heavier volume in Puts with 53.2% of added open interest being Puts.</li>
</ul>


Kospi is now off 20% from its 52-week highs. Historic vols are picking up and implieds looking like good value given market dynamics.
Hedging increased with broad based positioning in Puts across out-of-the-money strikes.
Heavier volume in Puts with 53.2% of added open interest being Puts.


EQD | Kospi Index Options Weekly - December 16 - 20

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Thematic (Sector/Industry)

<ul>
<li>India's nuclear power capacity is projected to surge <strong>2.7 times by 2031</strong>, reaching 22.3 GW and creating a lucrative investment landscape. </li>
<li>This expansion will unlock opportunities for companies like <a href="https://www.smartkarma.com/entities/bharat-heavy-electricals" target="_blank" data-smartkarma-citation="entities:460:1" rel="noopener">Bharat Heavy Electricals (BHEL IN)</a>, <a href="https://www.smartkarma.com/entities/walchandnagar-industries" target="_blank" data-smartkarma-citation="entities:9114:1" rel="noopener">Walchandnagar Industries (WI IN)</a>, and <a href="https://www.smartkarma.com/entities/hindustan-construction-co" target="_blank" data-smartkarma-citation="entities:6446:1" rel="noopener">Hindustan Construction Co (HCC IN)</a> in manufacturing, construction, and auxiliary services. </li>
<li>The rollout of 50 Bharat Small Reactors (BSRs) presents a particularly enticing prospect with a projected investment of Rs. 2,00,000 Crore.</li>
</ul>


India's nuclear power capacity is projected to surge 2.7 times by 2031, reaching 22.3 GW and creating a lucrative investment landscape. 
This expansion will unlock opportunities for companies like Bharat Heavy Electricals (BHEL IN), Walchandnagar Industries (WI IN), and Hindustan Construction Co (HCC IN) in manufacturing, construction, and auxiliary services. 
The rollout of 50 Bharat Small Reactors (BSRs) presents a particularly enticing prospect with a projected investment of Rs. 2,00,000 Crore.


Thematic Report: India's Nuclear Power Boom: A 2.7x Growth Story

Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cross-Asset Strategist & Quantitative Analyst

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Cross Asset Strategy

<ul>
<li>We are subscribers to Occam’s Razor, or the simplest explanation is the most satisfactory, and recent UFOs sightings are of terrestrial origin.</li>
<li>It’s nevertheless a worthwhile exercise to consider asset return expectations under the scenario of an extra-terrestrial alien invasion.</li>
<li>Our study of an alien invasion opens the door to discussing return studies. Standard assumptions about returns to bonds and equity risk premiums are useful only up to a point.</li>
</ul>


We are subscribers to Occam’s Razor, or the simplest explanation is the most satisfactory, and recent UFOs sightings are of terrestrial origin.
It’s nevertheless a worthwhile exercise to consider asset return expectations under the scenario of an extra-terrestrial alien invasion.
Our study of an alien invasion opens the door to discussing return studies. Standard assumptions about returns to bonds and equity risk premiums are useful only up to a point.


Equity Return Expectations Under An Alien Invasion

South Korea
Insights on South Korea

Behind the Scenes of KRX Value-Up Index Special Rebalancing: What It Means for Flow Dynamics

This post provides the inside scoop on the KRX Value-Up Index special rebalancing and its implications for flow dynamics.

Sanghyun Park

New Corporate Value Up Plans of POSCO Holdings and POSCO International

Both POSCO Holdings (005490 KS) and Posco International Corporation (047050 KS) provided solid, new Corporate Value Up reports. However, POSCO...

Douglas Kim

EQD | Kospi Index Options Weekly - December 16 - 20

Kospi's 20% drop from 52-week highs prompts increased hedging through out-of-the-money Puts, with implied volatility offering good value vs normal...

John Ley

Thematic Report: India's Nuclear Power Boom: A 2.7x Growth Story

India's nuclear power capacity set to surge 2.7 times by 2031, creating investment opportunities for companies like BHEL, Walchandnagar & HCC .

Nimish Maheshwari

Equity Return Expectations Under An Alien Invasion

Our study of an alien invasion opens the door to discussing return studies. Standard assumptions about returns to bonds and equity risk premiums...

Cam Hui

Behind the Scenes of KRX Value-Up Index Special Rebalancing: What It Means for Flow Dynamics

This post provides the inside scoop on the KRX Value-Up Index special rebalancing and its implications for flow dynamics.

Sanghyun Park

New Corporate Value Up Plans of POSCO Holdings and POSCO International

Both POSCO Holdings (005490 KS) and Posco International Corporation (047050 KS) provided solid, new Corporate Value Up reports. However, POSCO...

Douglas Kim

EQD | Kospi Index Options Weekly - December 16 - 20

​Kospi's 20% drop from 52-week highs prompts increased hedging through out-of-the-money Puts, with implied volatility offering good value vs normal...

John Ley

Thematic Report: India's Nuclear Power Boom: A 2.7x Growth Story

​India's nuclear power capacity set to surge 2.7 times by 2031, creating investment opportunities for companies like BHEL, Walchandnagar & HCC .

Nimish Maheshwari

Equity Return Expectations Under An Alien Invasion

Our study of an alien invasion opens the door to discussing return studies. Standard assumptions about returns to bonds and equity risk premiums...

Cam Hui

Kospi's 20% drop from 52-week highs prompts increased hedging through out-of-the-money Puts, with implied volatility offering good value vs normal...

India's nuclear power capacity set to surge 2.7 times by 2031, creating investment opportunities for companies like BHEL, Walchandnagar & HCC .