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>Another valuable long-short opportunity has arisen this time with K-New Deal rebalancing. The pair consists of Douzone Bizon and KMW, which have switched places in the Internet Index's top three.</li>
<li>Due to their relatively low trading volume, the passive flow size (x ADTV) that this pair will face at the closing price on March 9th is expected to be significant.</li>
<li>This creates sufficient opportunities for a Long-Short setup in terms of day or swing trading. As KMW is a constituent of the KOSDAQ 150, it is possible to short KMW.</li>
</ul>


Another valuable long-short opportunity has arisen this time with K-New Deal rebalancing. The pair consists of Douzone Bizon and KMW, which have switched places in the Internet Index's top three.
Due to their relatively low trading volume, the passive flow size (x ADTV) that this pair will face at the closing price on March 9th is expected to be significant.
This creates sufficient opportunities for a Long-Short setup in terms of day or swing trading. As KMW is a constituent of the KOSDAQ 150, it is possible to short KMW.


Long Short Setup on Douzone Bizon & KMW with K-New Deal Rebalancing on March 9

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>The review period for the March rebalance ends on 31 January, the changes will be announced towards end February and implemented at the close of trading on 9 March.</li>
<li>We forecast one add/delete for the Game Index, and a couple of adds/deletes for the BBIG Index. There will be a lot of capping changes.</li>
<li>The largest inflows are expected on <a href="https://www.smartkarma.com/entities/posco-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:12421:1" rel="noopener">Posco Chemical (003670 KS)</a> and <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a>; the largest outflows are expected on <a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation (096770 KS)</a> and <a href="https://www.smartkarma.com/entities/kmw-co-ltd" target="_blank" data-smartkarma-citation="entities:2834:1" rel="noopener">KMW (032500 KS)</a>.</li>
</ul>


The review period for the March rebalance ends on 31 January, the changes will be announced towards end February and implemented at the close of trading on 9 March.
We forecast one add/delete for the Game Index, and a couple of adds/deletes for the BBIG Index. There will be a lot of capping changes.
The largest inflows are expected on Posco Chemical (003670 KS) and Douzone Bizon (012510 KS); the largest outflows are expected on SK Innovation (096770 KS) and KMW (032500 KS).


KRX New Deal Index Rebalance Preview: Some Big Impact Names

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in the past two months.</li>
<li>In addition to these share buybacks, there has also been more recent news flow regarding the share purchases of Samsung Electronics by numerous senior directors.</li>
<li>In the past month, some of the larger market cap companies including KT&amp;G, Douzone Bizon, and Hyundai Elevator that have been buying back shares have been outperforming KOSPI. </li>
</ul>


In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in the past two months.
In addition to these share buybacks, there has also been more recent news flow regarding the share purchases of Samsung Electronics by numerous senior directors.
In the past month, some of the larger market cap companies including KT&amp;G, Douzone Bizon, and Hyundai Elevator that have been buying back shares have been outperforming KOSPI. 


Alpha Generation Through Share Buybacks in Korea: December 2022

Private Capital Markets

<ul>
<li>Megazone Cloud is the number one cloud managed service provider (MSP) in Korea. </li>
<li>Megazone Cloud was last valued at about 2.4 trillion won (as of August 2022) as it attracted 450 billion won funding from MBK Partners and IMM Private Equity.</li>
<li>Megazone Cloud has an important partnership with Amazon Web Services (AWS) as it became the first company in Korea to be a partner for AWS in the local cloud market.</li>
</ul>


Megazone Cloud is the number one cloud managed service provider (MSP) in Korea. 
Megazone Cloud was last valued at about 2.4 trillion won (as of August 2022) as it attracted 450 billion won funding from MBK Partners and IMM Private Equity.
Megazone Cloud has an important partnership with Amazon Web Services (AWS) as it became the first company in Korea to be a partner for AWS in the local cloud market.


Megazone Cloud: Number One Cloud MSP Provider (Unicorn) In Korea Led by Partnership with AWS

<ul>
<li>Three local indexes in Korea face rebalancing trading on March 10, supposedly at the close.</li>
<li>They are 1. KOSPI 200 Fast Entry for LG Energy Solution, 2. KOSPI Size Index Series biannual rebalancing, and 3. KRX BBIG K-New Deal biannual rebalancing.</li>
<li>There are 18 stocks in total, which have an estimated passive flow of ±0.5x ADTV &amp; an average daily trade value of +₩5.0B.</li>
</ul>


Three local indexes in Korea face rebalancing trading on March 10, supposedly at the close.
They are 1. KOSPI 200 Fast Entry for LG Energy Solution, 2. KOSPI Size Index Series biannual rebalancing, and 3. KRX BBIG K-New Deal biannual rebalancing.
There are 18 stocks in total, which have an estimated passive flow of ±0.5x ADTV &amp; an average daily trade value of +₩5.0B.


Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10

South Korea

Douzone Bizon Co., Ltd. develops and markets computer software.  The company develops MIS, ERP, e-Business Solutions, EFIS, SEM(Strategic Enterprise Management), BPS(Business Process Management), and ERM(Enterprise Risk Management). The Company's products target small and medium-sized enterprises.

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Douzone Bizon (012510 KS)

Long Short Setup on Douzone Bizon & KMW with K-New Deal Rebalancing on March 9

This post explores long-short setup opportunities on Douzone Bizon and KMW in the upcoming K-New Deal Index rebalancing on March 9th.

Sanghyun Park

KRX New Deal Index Rebalance Preview: Some Big Impact Names

There are some high impact changes expected at the March rebalance of the New Deal indices mainly from changes to the top 3 stocks in the Battery...

Brian Freitas

Megazone Cloud: Number One Cloud MSP Provider (Unicorn) In Korea Led by Partnership with AWS

Megazone Cloud is the number one cloud managed service provider (MSP) in Korea. Megazone Cloud became the first company in Korea to be a partner...

Douglas Kim

Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10

This post estimates the combined rebalancing flows of Korea's three local indexes, which should be seen on March 10, supposedly at the close.

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Long Short Setup on Douzone Bizon & KMW with K-New Deal Rebalancing on March 9

This post explores long-short setup opportunities on Douzone Bizon and KMW in the upcoming K-New Deal Index rebalancing on March 9th.

Sanghyun Park

KRX New Deal Index Rebalance Preview: Some Big Impact Names

There are some high impact changes expected at the March rebalance of the New Deal indices mainly from changes to the top 3 stocks in the Battery...

Brian Freitas

Alpha Generation Through Share Buybacks in Korea: December 2022

In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in the past...

Douglas Kim

Megazone Cloud: Number One Cloud MSP Provider (Unicorn) In Korea Led by Partnership with AWS

Megazone Cloud is the number one cloud managed service provider (MSP) in Korea. Megazone Cloud became the first company in Korea to be a partner...

Douglas Kim

Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10

This post estimates the combined rebalancing flows of Korea's three local indexes, which should be seen on March 10, supposedly at the close.

Sanghyun Park