Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

A Trading Strategy on the Upcoming KOSPI 200 Index Rebalance Amid Heightened Market Volatility

Event-Driven

In this insight, we provide a trading strategy on the upcoming KOSDAQ150 rebalance announcement in November. In the tables below, we provided a list of 10 stocks that could get included and 10 stocks that could get excluded in the next round of KOSDAQ150 rebalance.In the past one month, the 10 stocks for inclusion are down 5.7% on average, outperforming KOSDAQ which is down 12.4% in this period. In the past one month, the 10 stocks for exclusion are down 21.5% on average, underperforming KOSDAQ in the same period. The strategy here is to buy a basket of the stocks which could get included in the KOSDAQ150 index rebalance and combine this with bottom-up due diligence of each of these 10 companies to better understand their fundamentals. The same holds true for the companies that could potentially be excluded. The strategy would be to increase the weights of companies that could potentially get included in the KOSDAQ150 rebalance in the upcoming November announcement and reduce the weights of the bottom 5-7% market cap companies in KOSDAQ150 index.

In this insight, we provide a trading strategy on the upcoming KOSDAQ150 rebalance announcement in November. In the tables below, we provided a list of 10 stocks that could get included and 10 stocks that could get excluded in the next round of KOSDAQ150 rebalance.In the past one month, the 10 stocks for inclusion are down 5.7% on average, outperforming KOSDAQ which is down 12.4% in this period. In the past one month, the 10 stocks for exclusion are down 21.5% on average, underperforming KOSDAQ in the same period. The strategy here is to buy a basket of the stocks which could get included in the KOSDAQ150 index rebalance and combine this with bottom-up due diligence of each of these 10 companies to better understand their fundamentals. The same holds true for the companies that could potentially be excluded. The strategy would be to increase the weights of companies that could potentially get included in the KOSDAQ150 rebalance in the upcoming November announcement and reduce the weights of the bottom 5-7% market cap companies in KOSDAQ150 index. 

A Trading Strategy for the Upcoming KOSDAQ150 Rebalance in December

Advanced Process Systems

A Trading Strategy for the Upcoming KOSDAQ150 Rebalance in December