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

Posco International Corporation / Event-Driven

<ul>
<li>We still have the chance to become eligible. We will still receive the rights if we buy Posco International next Tuesday. But we will exercise them at ₩20,590, NOT ₩27,801.</li>
<li>Given that there is little cancellation risk, we can capitalize on the price falling below the appraisal price by opening both Long and Short at the same price.</li>
<li>We close Short if the price goes under ₩20,590 and fix the arb spread by exercising the rights with Long.</li>
</ul>


We still have the chance to become eligible. We will still receive the rights if we buy Posco International next Tuesday. But we will exercise them at ₩20,590, NOT ₩27,801.
Given that there is little cancellation risk, we can capitalize on the price falling below the appraisal price by opening both Long and Short at the same price.
We close Short if the price goes under ₩20,590 and fix the arb spread by exercising the rights with Long.


Posco International Merger: Deal Structure & Arbitrage Dynamics

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<ul>
<li>In this insight, we discuss the recent buying and selling by the Korea National Pension Service (NPS) of Korean stocks.</li>
<li>Of the 176 Korean stocks in which NPS reported changes in ownerships in 2Q 2022, NPS increased its stakes in 115 companies and reduced stakes in 61 companies.</li>
<li>NPS mostly increased stakes in aerospace, defense, construction equipment, and energy sectors while reducing stakes in telecom and tourism related stocks.</li>
</ul>


In this insight, we discuss the recent buying and selling by the Korea National Pension Service (NPS) of Korean stocks.
Of the 176 Korean stocks in which NPS reported changes in ownerships in 2Q 2022, NPS increased its stakes in 115 companies and reduced stakes in 61 companies.
NPS mostly increased stakes in aerospace, defense, construction equipment, and energy sectors while reducing stakes in telecom and tourism related stocks.


NPS Sells SK Bioscience, Naver, & LG Electronics and Buys Kakao Bank, Lotte Corp, & Samyang Foods

<ul>
<li>A noteworthy flow trend in the Korean stock market is the National Pension Service's local equity purchase. For this, they tend to overweight those previously underweighted blue-chip stocks. </li>
<li>All of the top 10 most net-bought stocks by local pensions on April 18-26 are KOSPI 200 constituents. And most of them all have a relatively small NPS-owned stake.</li>
<li>Most of them have significantly outperformed the KOSPI 200 (-0.90%) during this period.</li>
</ul>


A noteworthy flow trend in the Korean stock market is the National Pension Service's local equity purchase. For this, they tend to overweight those previously underweighted blue-chip stocks. 
All of the top 10 most net-bought stocks by local pensions on April 18-26 are KOSPI 200 constituents. And most of them all have a relatively small NPS-owned stake.
Most of them have significantly outperformed the KOSPI 200 (-0.90%) during this period.


Noteworthy Flow Trend: Korea NPS Overweighting Local Equity

Equity Bottom-Up

Posco International Corporation / Equity Bottom-Up

<ul>
<li>In this insight, we review Warren Buffett's stakes in Japanese trading  companies and review investment opportunities in Korean trading companies amid a war between Russia and Ukraine. </li>
<li>The recent war between Russia and Ukraine has resulted in higher commodities prices. This has boosted the share prices of commodities related companies globally, including Japanese and Korean trading companies.
</li>
<li>We would focus on GS Global Corp, Hanwha Corporation, Posco International Corporation, and LX International as Korean trading companies that could continue to outperform the market amid war in Ukraine. </li>
</ul>


In this insight, we review Warren Buffett's stakes in Japanese trading  companies and review investment opportunities in Korean trading companies amid a war between Russia and Ukraine. 
The recent war between Russia and Ukraine has resulted in higher commodities prices. This has boosted the share prices of commodities related companies globally, including Japanese and Korean trading companies.

We would focus on GS Global Corp, Hanwha Corporation, Posco International Corporation, and LX International as Korean trading companies that could continue to outperform the market amid war in Ukraine. 


Buffett’s Stakes in Japanese Trading Firms & A Review of Korean Trading Firms Amid War in Ukraine

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/senex-energy-ltd" target="_blank" data-smartkarma-citation="entities:18390:1" rel="noopener">Senex Energy (SXY AU)</a>'s Scheme Booklet is now out. The Scheme Meeting will be held on the 15 March. </li>
<li>The Independent Expert has concluded this US$600mn Offer is fair and reasonable and in the best interest of Senex shareholders.</li>
<li>The Offer price is full. And trading tight to terms.</li>
</ul>



Senex Energy (SXY AU)'s Scheme Booklet is now out. The Scheme Meeting will be held on the 15 March. 
The Independent Expert has concluded this US$600mn Offer is fair and reasonable and in the best interest of Senex shareholders.
The Offer price is full. And trading tight to terms.


Senex Energy: Scheme Booklet Out. Meeting On The 15 March

South Korea

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)

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Posco International Corporation (047050 KS)

Posco International Merger: Deal Structure & Arbitrage Dynamics

This post investigates Posco International's merger with Posco Energy, officially announced last Friday, and explores arbitrage opportunities...

Sanghyun Park

NPS Sells SK Bioscience, Naver, & LG Electronics and Buys Kakao Bank, Lotte Corp, & Samyang Foods

NPS moves the Korean stock market more than any other investor. In this insight, we discuss the recent buying and selling by the Korea National...

Douglas Kim

Noteworthy Flow Trend: Korea NPS Overweighting Local Equity

The NPS seems to have recently begun to overweight local equity, and this post investigates this significant flow trend and the stocks worthy of...

Sanghyun Park

Buffett’s Stakes in Japanese Trading Firms & A Review of Korean Trading Firms Amid War in Ukraine

We would focus on GS Corp, Hanwha Corporation, Posco International Corporation, and LX International as Korean trading companies that could...

Douglas Kim

Senex Energy: Scheme Booklet Out. Meeting On The 15 March

Trading tight at a gross/annualised spread of 0.9%/6.3%, including the A$0.05/share dividend. This is a done deal. Play the spread.

David Blennerhassett

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