Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

KOSDAQ150 Ad Hoc Index Rebalance: Hancom (030520) To Replace Vidente (121800)

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Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Vidente is a KOSDAQ 150 constituent. If designated as an administrative issue, it will be removed on the third trading day after the effective date of designation.</li>
<li>Hancom gets to replace Vidente, and rebalancing trading occurs at the close of August 19th. Hancom's passive inflow should be 4.70x ADTV.</li>
<li>It seems that proactive long positions have already been built up significantly from today. So, we should consider getting out of the position earlier than usual towards Friday's close.</li>
</ul>


Vidente is a KOSDAQ 150 constituent. If designated as an administrative issue, it will be removed on the third trading day after the effective date of designation.
Hancom gets to replace Vidente, and rebalancing trading occurs at the close of August 19th. Hancom's passive inflow should be 4.70x ADTV.
It seems that proactive long positions have already been built up significantly from today. So, we should consider getting out of the position earlier than usual towards Friday's close.


A Full Walkthrough of What Happens to Vidente & Hancom: KOSDAQ 150 Special Change

Hancom Inc

A Full Walkthrough of What Happens to Vidente & Hancom: KOSDAQ 150 Special Change