Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Event-Driven

<ul>
<li>Posco DX's KOSPI 200 fast entry effective date will likely coincide with the December regular rebalancing date.</li>
<li>We should focus on the ad-hoc change deletion as we can expect more pronounced price impact near the effective date due to lower chances of premature exposure than regular reviews.</li>
<li>The following three candidates are screened: K Car, Daesang Corporation, and Shinsegae International. They are all likely to exhibit a significant passive impact (x ADTV).</li>
</ul>


Posco DX's KOSPI 200 fast entry effective date will likely coincide with the December regular rebalancing date.
We should focus on the ad-hoc change deletion as we can expect more pronounced price impact near the effective date due to lower chances of premature exposure than regular reviews.
The following three candidates are screened: K Car, Daesang Corporation, and Shinsegae International. They are all likely to exhibit a significant passive impact (x ADTV).


Prime Target for Flow Trading Due to Low Pre-Exposure in December KOSPI 200 Rebalancing

<ul>
<li>LX Semicon and Tokai Carbon Korea will be excluded, and these two positions will be filled by Eo Technics and either HPSP or ISC Co Ltd.</li>
<li>The effective date is October 16th, and the rebalancing trading by the TIGER ETF occurs towards the closing (likely to start around 2 p.m.) on Friday, October 13th.</li>
<li>The practical setup would entail an EO Technics-TCK Long Short pair. For a more aggressive strategy, we could explore the inclusion of HPSP in this setup.</li>
</ul>


LX Semicon and Tokai Carbon Korea will be excluded, and these two positions will be filled by Eo Technics and either HPSP or ISC Co Ltd.
The effective date is October 16th, and the rebalancing trading by the TIGER ETF occurs towards the closing (likely to start around 2 p.m.) on Friday, October 13th.
The practical setup would entail an EO Technics-TCK Long Short pair. For a more aggressive strategy, we could explore the inclusion of HPSP in this setup.


Long Short Flow Trading Opportunity: TIGER Semicon Top 10 ETF Rebalancing Next Friday

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>Due to the sharp appreciation of Hana Micron's share price this year, its valuation discount to companies such as HPSP has narrowed substantially. </li>
<li>Samsung Electronics is one of the major customers of Hana Micron. Samsung recently reported that it has successfully secured the right to supply advanced memory chips to NVIDIA.</li>
<li>We do not believe Hana Micron's valuations are attractive right now. Rather than chasing after its shares, we would rather wait for its shares to retreat (20-30%) a bit.</li>
</ul>


Due to the sharp appreciation of Hana Micron's share price this year, its valuation discount to companies such as HPSP has narrowed substantially. 
Samsung Electronics is one of the major customers of Hana Micron. Samsung recently reported that it has successfully secured the right to supply advanced memory chips to NVIDIA.
We do not believe Hana Micron's valuations are attractive right now. Rather than chasing after its shares, we would rather wait for its shares to retreat (20-30%) a bit.


Hana Micron: Semiconductor Chips Packaging Company With Solid Fundamentals and FOMO Trading

<ul>
<li>NICE I&amp;S will likely complete the transfer schedule in early May, meaning that an ad-hoc change may occur before the regular rebalancing of the KOSDAQ 150 in June.</li>
<li>If this gets completed before SK Oceanplant's transfer listing schedule, the top reserved issue in NICE's GICS sector (INDUSTRIALS) will be included. It is Sun Kwang (003100 KS).</li>
<li>As evidenced in the case of LX Semicon, we should set up a preemptive position for potential ADDITION at the time of the T or T-1 KRX corporate action announcement.</li>
</ul>


NICE I&amp;S will likely complete the transfer schedule in early May, meaning that an ad-hoc change may occur before the regular rebalancing of the KOSDAQ 150 in June.
If this gets completed before SK Oceanplant's transfer listing schedule, the top reserved issue in NICE's GICS sector (INDUSTRIALS) will be included. It is Sun Kwang (003100 KS).
As evidenced in the case of LX Semicon, we should set up a preemptive position for potential ADDITION at the time of the T or T-1 KRX corporate action announcement.


Target & Timing for Flow Trading Position Setup in NICE I&S KOSPI Transfer Event

<ul>
<li>Once again, the profit from Long Short basket trading has also been significant this time. The returns were quite juicy even if the period is shortened to From-February. </li>
<li>The critical question now is whether the juice remains until the effective date. From what I can see, there is still some juice left.</li>
<li>This is because it is generally observed that the flow trading window for this event tends to continue beyond the effective date.</li>
</ul>


Once again, the profit from Long Short basket trading has also been significant this time. The returns were quite juicy even if the period is shortened to From-February. 
The critical question now is whether the juice remains until the effective date. From what I can see, there is still some juice left.
This is because it is generally observed that the flow trading window for this event tends to continue beyond the effective date.


KOSPI Size Indexes Migrants: Official Results & Price Performances So Far

South Korea

LX Semicon Co., Ltd. designs, develops, and markets mixed-signal semiconductors. The Company utilizes its own algorithm and technologies to enhance the features and capabilities of flat panel displays that are used in electronic devices and mobile handsets. LX Semicon markets its products worldwide.

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LX Semicon (108320 KS)

Prime Target for Flow Trading Due to Low Pre-Exposure in December KOSPI 200 Rebalancing

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Long Short Flow Trading Opportunity: TIGER Semicon Top 10 ETF Rebalancing Next Friday

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Hana Micron: Semiconductor Chips Packaging Company With Solid Fundamentals and FOMO Trading

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Target & Timing for Flow Trading Position Setup in NICE I&S KOSPI Transfer Event

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KOSPI Size Indexes Migrants: Official Results & Price Performances So Far

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