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

List of 23 Tradable Prefs in Korea: Samsung E-M & CJ CheilJedang Currently Catch the Eye

Hyundai Motor Share Class: Long 2PB / Short 1P Amid Restructuring Speculation

Hyundai 2PB Bottoming Out: Interim Div Scrapping Factor Should End at This Level

Clepsydra Capital

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

Event-Driven

<ul>
<li>The possibility that Ord's current outperformance remains a structural trend is not high because of the 2P discount close to its YTD high and a price reversal with 1P.</li>
<li>This price reversal has been a strong signal for reversion because 2P receives more dividends by ₩50 per share along with a liquidity premium compared to 1P.</li>
<li>Also, the dividend yield difference with Ord is not small from a historical point of view. So, we should expect 2P reversion not only to 1P but Ord.</li>
</ul>


The possibility that Ord's current outperformance remains a structural trend is not high because of the 2P discount close to its YTD high and a price reversal with 1P.
This price reversal has been a strong signal for reversion because 2P receives more dividends by ₩50 per share along with a liquidity premium compared to 1P.
Also, the dividend yield difference with Ord is not small from a historical point of view. So, we should expect 2P reversion not only to 1P but Ord.


Hyundai Motor 2P Reversion Trading Relative to Ordinary