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>Hankook &amp; Company is unexpectedly entering Autos, the only large-cap inclusion, likely getting a significant weight and facing a massive flow impact.</li>
<li>Like BBIG, this single-day flow event driven by one or two ETFs means smaller front-running impact, but names like Hankook &amp; Company could see early positioning due to massive flows.</li>
<li>I'll position in big impact names two days before the ETF rebalance trading. I’ll then go long on a basket of those with over 0.5x ADTV at Wednesday’s close.</li>
</ul>


Hankook &amp; Company is unexpectedly entering Autos, the only large-cap inclusion, likely getting a significant weight and facing a massive flow impact.
Like BBIG, this single-day flow event driven by one or two ETFs means smaller front-running impact, but names like Hankook &amp; Company could see early positioning due to massive flows.
I'll position in big impact names two days before the ETF rebalance trading. I’ll then go long on a basket of those with over 0.5x ADTV at Wednesday’s close.


KRX Sector Rebalance Shocker: Massive Flow Impact on Hankook & Company

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Quantitative Analysis

<ul>
<li>In this insight, we discuss using Smartkarma's new feature called Smart Score Screener to screen alpha generating stocks in Korea.</li>
<li>There are five major components of the Smart Score Screener including 1) Value, 2) Dividends, 3) Growth, 4) Resilience, and 5) Momentum.</li>
<li>In addition to these five major components, the Smart Score Screener also includes Country, Sector, and Market Cap breakdowns. There is also a Score section which provides cumulative scores. </li>
</ul>


In this insight, we discuss using Smartkarma's new feature called Smart Score Screener to screen alpha generating stocks in Korea.
There are five major components of the Smart Score Screener including 1) Value, 2) Dividends, 3) Growth, 4) Resilience, and 5) Momentum.
In addition to these five major components, the Smart Score Screener also includes Country, Sector, and Market Cap breakdowns. There is also a Score section which provides cumulative scores. 


Using Smartkarma's Smart Score Screener to Screen Alpha Generating Stocks in Korea

<ul>
<li>This December’s KOSPI 200 shuffle will highlight stocks likely to see strong passive flows from changes in float rates.</li>
<li>Ecopro Materials sees BRV offloading shares, weakening its major shareholder status. Korea Zinc might mirror the Hankook &amp; Company scenario, bundling both families' stakes and treasury for non-float rate calculations.</li>
<li>The passive impacts may be small compared to constituent changes, but less dilution from proactive positioning means the price impact could be more noticeable as the effective date approaches.</li>
</ul>


This December’s KOSPI 200 shuffle will highlight stocks likely to see strong passive flows from changes in float rates.
Ecopro Materials sees BRV offloading shares, weakening its major shareholder status. Korea Zinc might mirror the Hankook &amp; Company scenario, bundling both families' stakes and treasury for non-float rate calculations.
The passive impacts may be small compared to constituent changes, but less dilution from proactive positioning means the price impact could be more noticeable as the effective date approaches.


KRX Float Rates for KOSPI 200 Constituents as of Today: Watch the Float Change Stocks

<ul>
<li>The new 100% mandatory tender offer rule could push buyers to lower premiums for major shareholders, potentially increasing hostile takeover attempts as costs get shared with minority shareholders.</li>
<li>It looks like MBK is eyeing this situation as a chance to redefine their strategy. This really shows how serious MBK is about the Korea Zinc deal.</li>
<li>Watch for top-tier assets available via hostile takeovers, particularly companies like SK Inc and Lotte Corp, where low shareholder stakes may lead to management conflicts.</li>
</ul>


The new 100% mandatory tender offer rule could push buyers to lower premiums for major shareholders, potentially increasing hostile takeover attempts as costs get shared with minority shareholders.
It looks like MBK is eyeing this situation as a chance to redefine their strategy. This really shows how serious MBK is about the Korea Zinc deal.
Watch for top-tier assets available via hostile takeovers, particularly companies like SK Inc and Lotte Corp, where low shareholder stakes may lead to management conflicts.


Why MBK's Move into Local Hostile Takeover Scene Matters: Focus on SK Inc and Lotte Corp

<ul>
<li>MBK can cut their target volume to 12% and, with 2 trillion won, raise the tender price to ₩800,000, leaving them a 20% cushion.</li>
<li>MBK’s tight schedule aims to hit the 6.98% target while minimizing price volatility and market risk by shortening the offer window.</li>
<li>MBK plans to sweeten the deal by about 20%, similar to Hankook, aiming for a 6.98% target with a 20% price hike from the start.</li>
</ul>


MBK can cut their target volume to 12% and, with 2 trillion won, raise the tender price to ₩800,000, leaving them a 20% cushion.
MBK’s tight schedule aims to hit the 6.98% target while minimizing price volatility and market risk by shortening the offer window.
MBK plans to sweeten the deal by about 20%, similar to Hankook, aiming for a 6.98% target with a 20% price hike from the start.


Insights on the Odds of MBK Ramping up the Tender Price by 20%

South Korea

Hankook & Company Co., Ltd. operates as a holding company. The Company operates batteries manufacturing, leasing, management consulting, tires production, and other businesses. Hankook provides services worldwide.

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Hankook & Company (000240 KS)

KRX Sector Rebalance Shocker: Massive Flow Impact on Hankook & Company

This post breaks down the surprises from the KRX Sector Indexes' September rebalance event, which is set to take place at the close on the 12th,...

Sanghyun Park

Using Smartkarma's Smart Score Screener to Screen Alpha Generating Stocks in Korea

In this insight, we discuss using Smartkarma's new feature called Smart Score Screener to screen alpha generating stocks in Korea.

Douglas Kim

KRX Float Rates for KOSPI 200 Constituents as of Today: Watch the Float Change Stocks

KOSPI 200 December Rebalancing: Constituent changes are as predicted, but it's important to pay attention to the stocks with float changes.

Sanghyun Park

Why MBK's Move into Local Hostile Takeover Scene Matters: Focus on SK Inc and Lotte Corp

This post investigates the reasons MBK has suddenly ventured into the hostile takeover market in Korea and discusses why we should pay attention to...

Sanghyun Park

Insights on the Odds of MBK Ramping up the Tender Price by 20%

This post offers insights into the likelihood of MBK Partners boosting the tender price by 20% for Korea Zinc shareholders.

Sanghyun Park

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