Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>KRX-Listed 2x daily leveraged ETFs on <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> have suffered from volatile mean-reverting moves, with the leverage index down sharply since launch.</li>
<li>
AUM is starting to feel the pressure, declining in the first half of July after peaking on 25 June, while several consecutive days of outflows suggest investor demand has weakened.</li>
<li>
ETF flows remain relevant for underlying liquidity, while the inverse 2x product has gained AUM in July as Samsung Elec declined, highlighting a shift toward downside exposure.</li>
</ul>


KRX-Listed 2x daily leveraged ETFs on Samsung Electronics (005930 KS) have suffered from volatile mean-reverting moves, with the leverage index down sharply since launch.

AUM is starting to feel the pressure, declining in the first half of July after peaking on 25 June, while several consecutive days of outflows suggest investor demand has weakened.

ETF flows remain relevant for underlying liquidity, while the inverse 2x product has gained AUM in July as Samsung Elec declined, highlighting a shift toward downside exposure.


Samsung Electronics (005930 KS): Leveraged ETF AUM Comes Under Pressure

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>Sharp dislocations in Asian markets have opened up relative value trade opportunities. Many Asian markets' valuations are near long-term averages, but some are far more expensive, and some far cheaper.</li>
<li>Going by likely mean reversion, we conclude that Taiwan should correct more while Korea should rerate. The other markets are close to their long-term means, and hence, difficult to call.</li>
<li>In ASEAN, going long Indonesia and Philippines and shorting Singapore could be profitable. Shorting Thailand could be an option too, from the perspective of earnings pressure due to tourism slowdown.</li>
</ul>


Sharp dislocations in Asian markets have opened up relative value trade opportunities. Many Asian markets' valuations are near long-term averages, but some are far more expensive, and some far cheaper.
Going by likely mean reversion, we conclude that Taiwan should correct more while Korea should rerate. The other markets are close to their long-term means, and hence, difficult to call.
In ASEAN, going long Indonesia and Philippines and shorting Singapore could be profitable. Shorting Thailand could be an option too, from the perspective of earnings pressure due to tourism slowdown.


Asian Equities: Relative Value Trades After This Dislocation

AI | Semiconductors | Commodities, Mint Finance

Raghav Vashisht

AI | Semiconductors | Commodities

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

Equity Bottom-Up

<ul>
<li>Gaia is likely a high-powered PCIe companion card aiming to replace Nvidia's discrete workstation GPUs by leveraging Processing-in-Memory (PIM).</li>
<li>We estimate Gaia must target an 800-1,200 TOPS envelope to displace Nvidia’s workstation GPUs, specifically leveraging PIM to bypass the severe data bottlenecks of standard PCIe interfaces.</li>
<li>The PC-level integration is a Trojan horse to potentially pitch custom hyperscaler ASICs against incumbents, providing long-term optionality ahead of a pivotal (because ADRs) and potentially soft SKHynix earnings print.</li>
</ul>


Gaia is likely a high-powered PCIe companion card aiming to replace Nvidia's discrete workstation GPUs by leveraging Processing-in-Memory (PIM).
We estimate Gaia must target an 800-1,200 TOPS envelope to displace Nvidia’s workstation GPUs, specifically leveraging PIM to bypass the severe data bottlenecks of standard PCIe interfaces.
The PC-level integration is a Trojan horse to potentially pitch custom hyperscaler ASICs against incumbents, providing long-term optionality ahead of a pivotal (because ADRs) and potentially soft SKHynix earnings print.


Samsung's Gaia: A PIM Trojan Horse and the Case for Structural Outperformance

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

Samsung Electronics / Equity Capital Markets

<ul>
<li>Bloomberg published an article today that Samsung Electronics is in early discussions of a potential listing of ADRs in the U.S. </li>
<li>The number one reason why Samsung Electronics should list its shares in the U.S. is that this could reduce the valuation discount on the company relative to its global peers. </li>
<li>In terms of Samsung Electronics completing an ADR listing, I think the overall process could take about 2-3 years.</li>
</ul>


Bloomberg published an article today that Samsung Electronics is in early discussions of a potential listing of ADRs in the U.S. 
The number one reason why Samsung Electronics should list its shares in the U.S. is that this could reduce the valuation discount on the company relative to its global peers. 
In terms of Samsung Electronics completing an ADR listing, I think the overall process could take about 2-3 years.


Top Five Reasons Why Samsung Electronics Should List Its Shares as ADRs in the U.S.

<ul>
<li>Anecdotally, fund flows from foreign institutions are important drivers for Asian equity markets. But considering annual FII flows into Asian markets, and their performance tells a different story.</li>
<li>Taiwan and Korea's performances are the most uncorrelated with foreign flows. India's is the most correlated, despite the sharp spike in India's domestic flows. Thailand and Philippines are reasonably correlated.</li>
<li>Considering fundamentals (earnings growth forecasts and direction of estimates) and the extent of overbuying/overselling in a market, we think Korea, Taiwan should see buying. India, Indonesia, Philippines could be sold.</li>
</ul>


Anecdotally, fund flows from foreign institutions are important drivers for Asian equity markets. But considering annual FII flows into Asian markets, and their performance tells a different story.
Taiwan and Korea's performances are the most uncorrelated with foreign flows. India's is the most correlated, despite the sharp spike in India's domestic flows. Thailand and Philippines are reasonably correlated.
Considering fundamentals (earnings growth forecasts and direction of estimates) and the extent of overbuying/overselling in a market, we think Korea, Taiwan should see buying. India, Indonesia, Philippines could be sold.


Asian Equities: How Critical Are FII Flows for Asia, and in Which Markets Are They Likely to Revive?

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (SMSN LI)

Samsung Electronics (005930 KS): Leveraged ETF AUM Comes Under Pressure

Samsung Electronics’ leveraged ETF AUM is coming under pressure as volatility bites, outflows emerge, and inverse exposure gains traction.

Gaudenz Schneider

Asian Equities: Relative Value Trades After This Dislocation

Asian markets present relative value trade opportunities due to sharp dislocations in valuations. TW may correct more, KR could rerate. Long Indo...

Manishi Raychaudhuri

Samsung's Gaia: A PIM Trojan Horse and the Case for Structural Outperformance

Gaia, a high-powered PCIe companion card, aims to replace Nvidia's discrete workstation GPUs by leveraging Processing-in-Memory (PIM) to bypass...

Mint Finance

Top Five Reasons Why Samsung Electronics Should List Its Shares as ADRs in the U.S.

Bloomberg published an article today that Samsung Electronics is in early discussions of a potential listing of ADRs in the U.S.

Douglas Kim

Asian Equities: How Critical Are FII Flows for Asia, and in Which Markets Are They Likely to Revive?

Foreign fund flows are not the main drivers of several Asian markets. TW & KR show the least correlation & India the most. KR & TW could see near...

Manishi Raychaudhuri

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Samsung Electronics (005930 KS): Leveraged ETF AUM Comes Under Pressure

Samsung Electronics’ leveraged ETF AUM is coming under pressure as volatility bites, outflows emerge, and inverse exposure gains traction.

Gaudenz Schneider

Asian Equities: Relative Value Trades After This Dislocation

​Asian markets present relative value trade opportunities due to sharp dislocations in valuations. TW may correct more, KR could rerate. Long Indo...

Manishi Raychaudhuri

Samsung's Gaia: A PIM Trojan Horse and the Case for Structural Outperformance

​Gaia, a high-powered PCIe companion card, aims to replace Nvidia's discrete workstation GPUs by leveraging Processing-in-Memory (PIM) to bypass...

Mint Finance

Top Five Reasons Why Samsung Electronics Should List Its Shares as ADRs in the U.S.

Bloomberg published an article today that Samsung Electronics is in early discussions of a potential listing of ADRs in the U.S.

Douglas Kim

Asian Equities: How Critical Are FII Flows for Asia, and in Which Markets Are They Likely to Revive?

​Foreign fund flows are not the main drivers of several Asian markets. TW & KR show the least correlation & India the most. KR & TW could see near...

Manishi Raychaudhuri

Asian markets present relative value trade opportunities due to sharp dislocations in valuations. TW may correct more, KR could rerate. Long Indo...

Gaia, a high-powered PCIe companion card, aims to replace Nvidia's discrete workstation GPUs by leveraging Processing-in-Memory (PIM) to bypass...

Foreign fund flows are not the main drivers of several Asian markets. TW & KR show the least correlation & India the most. KR & TW could see near...