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

<ul>
<li>This ETF's AUM has decreased by 20% over the past three months, remaining at ₩120B. It has 22 constituents, and there won't be any addition/deletion at the upcoming rebalancing.</li>
<li>As HYBE's recent share price plunged, we can expect a fairly interesting passive impact from this rebalancing, because its 10% cap reversion is certain to occur despite the price plunge.</li>
<li>CJ ENM (-0.19x ADTV) and Studio Dragon (+0.25x ADTV) are also expected to have a significant passive impact.</li>
</ul>


This ETF's AUM has decreased by 20% over the past three months, remaining at ₩120B. It has 22 constituents, and there won't be any addition/deletion at the upcoming rebalancing.
As HYBE's recent share price plunged, we can expect a fairly interesting passive impact from this rebalancing, because its 10% cap reversion is certain to occur despite the price plunge.
CJ ENM (-0.19x ADTV) and Studio Dragon (+0.25x ADTV) are also expected to have a significant passive impact.


WISE Theme Index "Media Contents" Rebalancing Projections: HYBE, CJ ENM, & Studio Dragon

Mirae Asset TIGER Secondary Cell ETF / Event-Driven

<ul>
<li>In general, the projection hit rate for the top market cap constituents was sufficiently high. And the correlation between their stock price direction and passive flow was also high.</li>
<li>However, the projection hit rate for the constituents with a small market cap was relatively low.</li>
<li>If we traded the proposed tradable names with an equal-weighted Long/Short basket, we would have achieved a return of 1.76%. Even excluding Hanjin Kal, we would have achieved 1.31%.</li>
</ul>


In general, the projection hit rate for the top market cap constituents was sufficiently high. And the correlation between their stock price direction and passive flow was also high.
However, the projection hit rate for the constituents with a small market cap was relatively low.
If we traded the proposed tradable names with an equal-weighted Long/Short basket, we would have achieved a return of 1.76%. Even excluding Hanjin Kal, we would have achieved 1.31%.


Recap on WISE Theme Indexes (TIGER ETFs) Rebalancing Trading on April 14

<ul>
<li>Three WISE theme indexes undergo quarterly rebalancing today at the close.</li>
<li>The flow projections shown below in the DETAIL are based on the closing prices of April 12.</li>
<li>We have 13 Long/Short tradable names based on these flow projections: an ADTV of at least ₩10B &amp; a passive flow impact of 0.10x ADTV or more</li>
</ul>


Three WISE theme indexes undergo quarterly rebalancing today at the close.
The flow projections shown below in the DETAIL are based on the closing prices of April 12.
We have 13 Long/Short tradable names based on these flow projections: an ADTV of at least ₩10B &amp; a passive flow impact of 0.10x ADTV or more


WISE Theme Indexes Rebalancing Today: Flow Projections as of Close on April 12

Mirae Asset Tiger Media Contents ETF / Event-Driven

<ul>
<li>Next Thursday, the rebalancing trading of the WISE Secondary Cell Index will occur. The current AUM is ₩0.15T, and the AUM has increased a bit in the last two weeks.</li>
<li>Four names (2 Longs &amp; 2 Shorts) are screened as follows: <strong>CJ ENM, Dear U, JYP Entertainment, &amp; Jcontentree Corp</strong>.</li>
<li>We should consider putting only JYP Ent in the Short basket. On the other hand, it seems okay to put CJ ENM and Dear U together in the Long basket.</li>
</ul>


Next Thursday, the rebalancing trading of the WISE Secondary Cell Index will occur. The current AUM is ₩0.15T, and the AUM has increased a bit in the last two weeks.
Four names (2 Longs &amp; 2 Shorts) are screened as follows: CJ ENM, Dear U, JYP Entertainment, &amp; Jcontentree Corp.
We should consider putting only JYP Ent in the Short basket. On the other hand, it seems okay to put CJ ENM and Dear U together in the Long basket.


WISE Media Contents Rebalancing (TIGER ETF): Long/Short Tradable Names

<ul>
<li>WISE Media Contents rebalances every quarter in January, April, July, and October. The effective date for the upcoming rebalancing is April 15.</li>
<li>The gap between the rebalancing weight change estimations based on the float-adjusted market caps and the actual implementation of the ETF operator (TIGER) is not significant.</li>
<li>Following stocks are worth paying attention: (Short) Jyp Entertainment, S.M.Entertainment, Studio Dragon, Jcontentree, and SBS Contents Hub / (Long) CJ ENM, DearU, D&amp;C Media, Genie Music, and IHQ</li>
</ul>


WISE Media Contents rebalances every quarter in January, April, July, and October. The effective date for the upcoming rebalancing is April 15.
The gap between the rebalancing weight change estimations based on the float-adjusted market caps and the actual implementation of the ETF operator (TIGER) is not significant.
Following stocks are worth paying attention: (Short) Jyp Entertainment, S.M.Entertainment, Studio Dragon, Jcontentree, and SBS Contents Hub / (Long) CJ ENM, DearU, D&amp;C Media, Genie Music, and IHQ


WISE Media Contents (TIGER ETF) Rebalancing Preview

South Korea

Hyundai Home Shopping Network Corporation  mechandises consumer products. The Company's products include clothes, home appliances, food, and luxuries. Hyundai Home Shopping retails through TV home shoppoing channels, catalogs, and the Inte rnet shopping mall.

Hyundai Home Shopping Network (057050 KS)

ISE Commerce Co., Ltd. provides overseas online shopping service.  The company allows customers to buy overseas items with foreign registered credit cards acting as buying agent on behalf of them.  The service also includes local language description and delivery.

YES24 Co.,Ltd is an on-line retailer.  The company markets and sells books. The company also provides online advertising service.

Lotte Shopping Co., Ltd. operates department stores and discount stores in South Korea.  The Company retails clothing, household goods, foods and other items through several branches.  Lotte Shopping also operates supermarkets and movie theaters.

Shinsegae Co., Ltd. operates department stores in South Korea.  The Company retails food, clothing, household goods, electronics, and other items through several branch stores.

Hotel Shilla Co.,Ltd operates and manages hotels in Seoul and Jeju. The Company also operates duty free shops, bakeries, restaurants, and catering and laundry service businesses.

Hyundai Department Store Co., Ltd. operates department stores under the name of Hyundai Department over nationwide.  The Company also produces home shopping programs for cable channels and sells merchandise through home shopping programs.

Shinsegae International Co., Ltd. was spun off from Shinsegae in 1996.  The company imports and distributes famous foreign brands and manufactures/distribut es domestic brand.  The Company's line of business includes the wholesale distribution of men's and women's apparel.

Cuckoo Homesys Co. Ltd. manufactures kitchen appliances. The Company produces and sells electric pressure cookers, dishwashers, blenders, water purifiers, and other products. Cuckoo Homesys also provides kitchen appliances exporting services. Cuckoo Homesys markets its products worldwide.

Kolao Holdings retails new and used cars, and provided repairs and maintenance services in Laos.  The company also retails motorcycles and automobile parts.

ASKUL Corporation sells office equipment products to medium and small sized business offices via the Internet and facsimiles.  The Company provides next day delivery services throughout Japan.

eDreams ODIGEO SA is a European online travel company.  The Company offers flights, hotels, vacation packages, train tickets, and car rentals with localized sites across countries worldwide.

Infibeam Avenues Limited operates as an e-commerce platform. The Company focuses on e-retail business including home and lifestyle products, books, automobile accessories, electronics, watches, health equipment, jewelry, footwear, apparel, baby products, movies, music, posters, magazines, toys, and gifts. Infibeam Avenues serves customers in India.

Jumia Technologies AG provides e-commerce services. The Company offers on-line products as well as delivery of packages to the consumers. Jumia Technologies serves customers in Germany and Africa.

Takkt AG provides one-stop shopping for equipment, supplies, and accessories for offices and warehouses.  The Company's products include office furniture and accessories, file systems, delivery carts, and related supplies.  Takkt offers its products through CD-ROMs, catalogs and the Internet, and operates throughout Europe and North America.

AO World PLC retails a range of home appliances. The Company sells refrigerators, freezers, dishwashers, washers/dryers, and other small appliances.

Despegar.com, Corp. provides online travel booking services. The Company offers online hotels, car, flights, vacation rentals, packages, and ticket booking services. Despegar.com also provides an online platform to compare tickets and packages.

1-800-FLOWERS.COM, Inc. is an e-commerce provider of floral products and gifts. The Company's product offerings, including fresh-cut and seasonal flowers, plants, floral arrangements, and home and garden merchandise, can be purchased online or by calling its toll-free telephone number.

Overstock.com, Inc. offers discounted brand-name merchandise for sale over the Internet. Products include bed-and-bath goods, kitchenware, jewelry, sporting goods, electronics, and designer accessories.

zooplus AG retails pet supplies over the Internet.

CJ ENM, Ltd. retails clothes, kitchen utensils, home appliances, and jewelry.  The Company sells its merchandise through TV home shopping channels, catalogs, and the Internet shopping mall.  CJ ENM operates cable television business through a subsidiary.

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CJ ENM (035760 KS)

WISE Theme Index "Media Contents" Rebalancing Projections: HYBE, CJ ENM, & Studio Dragon

This post projects the upcoming rebalancing of the TIGER Theme ETF "Media Contents": Hybe Co Ltd, CJ ENM, and Studio Dragon.

Sanghyun Park

Recap on WISE Theme Indexes (TIGER ETFs) Rebalancing Trading on April 14

This post is a recap of our flow trading on the WISE Theme Indexes (TIGER ETFs) rebalancing, which was carried out on April 14.

Sanghyun Park

WISE Theme Indexes Rebalancing Today: Flow Projections as of Close on April 12

Three WISE Theme Indexes undergo quarterly rebalancing today at the close. This post screens 13 tradable names for a Long/Short basket day trading.

Sanghyun Park

WISE Media Contents Rebalancing (TIGER ETF): Long/Short Tradable Names

This post recommends Long/Short tradable names for the rebalancing trading event of the WISE Media Contents Index (TIGER ETF) next Thursday.

Sanghyun Park

WISE Media Contents (TIGER ETF) Rebalancing Preview

This post previews the upcoming rebalancing of the WISE Media Contents Theme Index (TIGER ETF), whose effective date is April 15.

Sanghyun Park

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