Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Commodities

<ul>
<li>A review of recent events/data impacting our investment themes and outlook</li>
<li>Rate hike expectations in the United States continue to fall</li>
<li>July is forgotten as speculation returns in the AI space</li>
</ul>


A review of recent events/data impacting our investment themes and outlook
Rate hike expectations in the United States continue to fall
July is forgotten as speculation returns in the AI space


Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> gained 3.3% in September and its 2x Leveraged Index rose 4.6%, while combined long-ETF AUM remained broadly steady, declining 0.9%.</li>
<li>All seven long-leveraged ETFs recorded unit redemptions, with net outflows reaching KRW 200bn in September and continuing in early October.</li>
<li>In contrast, the inverse ETF’s unit count rose 90% and AUM increased 62%, despite the product losing 14.7% in September.</li>
</ul>



Samsung Electronics (005930 KS) gained 3.3% in September and its 2x Leveraged Index rose 4.6%, while combined long-ETF AUM remained broadly steady, declining 0.9%.
All seven long-leveraged ETFs recorded unit redemptions, with net outflows reaching KRW 200bn in September and continuing in early October.
In contrast, the inverse ETF’s unit count rose 90% and AUM increased 62%, despite the product losing 14.7% in September.


Samsung Elec (005930 KS): Long 2x ETF Outflows Persist as Inverse Product Attracts Assets

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

Korea Stock Exchange Kospi Index / Event-Driven

Korea Stock Exchange Kospi Index (KOSPI INDEX)

<ul>
<li>FSC’s rule gives same‑day vote ratios, offering quick sentiment read and partial visibility on appraisal risk—step one toward faster hard‑count disclosure down the line.</li>
<li>Hard count of dissenting shares only surfaces in quarterly reports, post‑appraisal window—denominator risk stays live for corp‑action trades tied to appraisal rights.</li>
<li>FSC rule applies from March ’26 AGMs/EGMs; half‑baked disclosure, but appraisal‑linked corp‑actions may see new post‑meeting trading patterns—stay prepped for the shift.</li>
</ul>


FSC’s rule gives same‑day vote ratios, offering quick sentiment read and partial visibility on appraisal risk—step one toward faster hard‑count disclosure down the line.
Hard count of dissenting shares only surfaces in quarterly reports, post‑appraisal window—denominator risk stays live for corp‑action trades tied to appraisal rights.
FSC rule applies from March ’26 AGMs/EGMs; half‑baked disclosure, but appraisal‑linked corp‑actions may see new post‑meeting trading patterns—stay prepped for the shift.


Korea FSC’s New Vote‑Split Disclosure Rule: What It Really Means for Appraisal Risk

<ul>
<li>NPS’s new SMID mandates use a benchmark, an 80/20 mix of the KOSPI Mid+Small Cap (Size Index) and KOSDAQ150, with ~₩500bn total, implying roughly a 20% step-up in mid/small-cap exposure.</li>
<li>March KOSPI large→mid-cap migration could trigger significant passive flows, unlike last September when policy rallies and APR index noise distorted flow–price impact correlation.</li>
<li>NPS compressed its SMID trading window near the effective date, hinting at tighter rebalancing; with ~20% mid-cap exposure bump in March, this could create a notable price impact trade.</li>
</ul>


NPS’s new SMID mandates use a benchmark, an 80/20 mix of the KOSPI Mid+Small Cap (Size Index) and KOSDAQ150, with ~₩500bn total, implying roughly a 20% step-up in mid/small-cap exposure.
March KOSPI large→mid-cap migration could trigger significant passive flows, unlike last September when policy rallies and APR index noise distorted flow–price impact correlation.
NPS compressed its SMID trading window near the effective date, hinting at tighter rebalancing; with ~20% mid-cap exposure bump in March, this could create a notable price impact trade.


NPS Announces New Local SMID Fund Managers: Could Impact March KOSPI Size Index Migration Event

<ul>
<li>A review of recent events/data impacting our investment themes and outlook</li>
<li>A clearing event sets up the catalyst for a bounce in the AI/Memory names</li>
<li>Joint Yen Intervention sets up the DXY for a breakdown</li>
</ul>


A review of recent events/data impacting our investment themes and outlook
A clearing event sets up the catalyst for a bounce in the AI/Memory names
Joint Yen Intervention sets up the DXY for a breakdown


South Korea

The KOSPI Index is a capitalization-weighted index of all common shares on the Korean Stock Exchanges. The Index was developed with a base value of 100 as of January 4, 1980. Note: The preferred shares are excluded in calculating the KOSPI Index from June 14, 2002. 

Korea Stock Exchange Kospi Index (KOSPI INDEX)

Overview #73 – The Summer Doldrums

A review of recent events/data impacting our investment themes and outlook. Low volume and low conviction but some things never change

Rikki Malik

Samsung Elec (005930 KS): Long 2x ETF Outflows Persist as Inverse Product Attracts Assets

Positive performance kept long 2x leveraged ETF assets broadly steady despite continued redemptions, while the inverse product attracted...

Gaudenz Schneider

Korea FSC’s New Vote‑Split Disclosure Rule: What It Really Means for Appraisal Risk

This post looks at how Korea FSC’s new shareholder meeting vote disclosure rule actually plays out for appraisal risk sizing.

Sanghyun Park

NPS Announces New Local SMID Fund Managers: Could Impact March KOSPI Size Index Migration Event

NPS head Kim Tae-hyun confirmed NPS may pause trimming Korea equities after parametric tweaks pushed fund depletion to 2071. Kim signaled the 13%...

Sanghyun Park

Overview#71 – Cheque Please

A review of recent events/data impacting our investment themes and outlook. We look at hyperscaler results and the joint US/Japan intervention

Rikki Malik