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>1P/Ord LONG/SHORT betting on a 1P-skewed buyback does not look very desirable. The Lee family's financial needs are short-term, so there is no need for a 1P-skewed buyback.</li>
<li>Given that the 1P discount rate has stabilized again, a strategy betting on the mean reversion does not seem very timely either.</li>
<li>We should look at the possibility that false expectations for a special year-end dividend will further deepen futures backwardation. This situation can lead to quite a juicy spot/futures spread opening.</li>
</ul>


1P/Ord LONG/SHORT betting on a 1P-skewed buyback does not look very desirable. The Lee family's financial needs are short-term, so there is no need for a 1P-skewed buyback.
Given that the 1P discount rate has stabilized again, a strategy betting on the mean reversion does not seem very timely either.
We should look at the possibility that false expectations for a special year-end dividend will further deepen futures backwardation. This situation can lead to quite a juicy spot/futures spread opening.


Trading Ideas on the Possibility of Samsung Electronics' Special Shareholder Returns

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On 4 October, it was reported that Samsung Electronics (005930 KS) has set up a task force to raise shareholder value of the company.</li>
<li>This task force was formed at the order of Samsung's Vice Chairman Lee Jae-Yong.</li>
<li>All in all, a major share buyback and cancellations coupled with higher dividends could result in a share price turnaround for Samsung Electronics. </li>
</ul>


On 4 October, it was reported that Samsung Electronics (005930 KS) has set up a task force to raise shareholder value of the company.
This task force was formed at the order of Samsung's Vice Chairman Lee Jae-Yong.
All in all, a major share buyback and cancellations coupled with higher dividends could result in a share price turnaround for Samsung Electronics. 


Samsung Electronics: Lee Jae-Yong Orders the Creation of a New Task Force to Raise Shareholder Value

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

<ul>
<li>Taiwan’s tech space fell hard last week, with the tech sector down 5.4%, compared to a 4.9% drop for the overall market. Semiconductors performed the worst, down 6.2%.</li>
<li>Hon Hai, Delta, Lite-On -- EV a major theme for the first-ever Taiwan Expo USA coming October 12th.</li>
<li>Taiwan wafer exports were at an all-time high in August. We note that wafer names have underperformed TSMC.</li>
</ul>


Taiwan’s tech space fell hard last week, with the tech sector down 5.4%, compared to a 4.9% drop for the overall market. Semiconductors performed the worst, down 6.2%.
Hon Hai, Delta, Lite-On -- EV a major theme for the first-ever Taiwan Expo USA coming October 12th.
Taiwan wafer exports were at an all-time high in August. We note that wafer names have underperformed TSMC.


Taiwan Tech Weekly: Trying to Recover After a Week of Deep Declines

Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>We compare how a portfolio composed of our top five picks in each of our thematic reports based on datamining technical publications would have performed versus Indices</li>
<li>The size of outperformance for various periods suggests that incorporating innovation quality index that we use to rank companies can be a solid tool to generate alpha.   </li>
<li>We understand that much of the outperformance is generated by positive skew but even backing out the largest two contributors we see solid outperformance.</li>
</ul>


We compare how a portfolio composed of our top five picks in each of our thematic reports based on datamining technical publications would have performed versus Indices
The size of outperformance for various periods suggests that incorporating innovation quality index that we use to rank companies can be a solid tool to generate alpha.   
We understand that much of the outperformance is generated by positive skew but even backing out the largest two contributors we see solid outperformance.


A Look at How a Portfolio Composed of Our Top Five Innovators in Each Report Would Have Performed

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>South Korea moves to the bottom of the 'big 4' as managers aggressively rotate portfolios in 2022.</li>
<li>Nearly a 5th of Asia Ex-Japan managers made the switch to underweight over the last 6-months, pushing allocations to their lowest levels in over a decade. </li>
<li>KakaoBank, Samsung SDI, Kakao Corp and Samsung Electronics Pref Shares saw allocations fall the most.</li>
</ul>


South Korea moves to the bottom of the 'big 4' as managers aggressively rotate portfolios in 2022.
Nearly a 5th of Asia Ex-Japan managers made the switch to underweight over the last 6-months, pushing allocations to their lowest levels in over a decade. 
KakaoBank, Samsung SDI, Kakao Corp and Samsung Electronics Pref Shares saw allocations fall the most.


Asia Ex-Japan Funds Rotate Out of South Korea

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (SMSN LI)

Trading Ideas on the Possibility of Samsung Electronics' Special Shareholder Returns

This post details why Samsung Electronics will likely proceed with special shareholder returns at the request of Lee Jae-yong and discusses trading...

Sanghyun Park

Samsung Electronics: Lee Jae-Yong Orders the Creation of a New Task Force to Raise Shareholder Value

On 4 October, it was reported that Samsung Electronics (005930 KS) has set up a task force at the order of Samsung's Vice Chairman Lee Jae-Yong to...

Douglas Kim

Taiwan Tech Weekly: Trying to Recover After a Week of Deep Declines

AU Optronics stock suspended, Intel's Mobileye IPO is back, Samsung takes share from TSMC, Taiwan wafer exports are at an all-time high.

Vincent Fernando, CFA

A Look at How a Portfolio Composed of Our Top Five Innovators in Each Report Would Have Performed

Our datamining reports ranks companies within thematic based on innovation quality. We see strong outperformance in a portfolio built using the top...

Pyari Menon

Asia Ex-Japan Funds Rotate Out of South Korea

Active Asia Ex-Japan managers have rotated away from South Korean stocks in 2022, pushing allocations towards their lowest level in over a decade.

Steven Holden

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