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>Street chatter points to Samsung buyback board approval likely landing in the first half of next month, pre mid month, with management increasingly focused on Hynix market cap flip risk.</li>
<li>Samsung common outperforms prefs today. Street reads it as management leaning into Hynix relative performance and skewed toward common driven flow impact.</li>
<li>Lean into Hynix ADR setup with overhang reinforcing long Samsung short Hynix. July buyback flow adds tailwind. Square Hynix outperformance may re lock into listing window despite today's pullback.</li>
</ul>


Street chatter points to Samsung buyback board approval likely landing in the first half of next month, pre mid month, with management increasingly focused on Hynix market cap flip risk.
Samsung common outperforms prefs today. Street reads it as management leaning into Hynix relative performance and skewed toward common driven flow impact.
Lean into Hynix ADR setup with overhang reinforcing long Samsung short Hynix. July buyback flow adds tailwind. Square Hynix outperformance may re lock into listing window despite today's pullback.


Samsung July Buyback: Impact on the Hynix ADR Listing Setup

Index Rebalance

<ul>
<li>ISC rebalance flows last cycle look negligible versus what is coming. Square inclusion drives major weight compression, setting up large passive flows across all names ex Samsung and Hynix.</li>
<li>Turnover ripping higher but passive ticket still screens extreme versus DTV and shares out, so positioning should front run Square, Isu Petasys, and Jusung given high inclusion odds.</li>
<li>Into rebalance window, expect flows rotating into deletes and legacy names hit by Square driven weight compression. Not typical setup, positioning likely front runs schedule, treat as live flow event.</li>
</ul>


ISC rebalance flows last cycle look negligible versus what is coming. Square inclusion drives major weight compression, setting up large passive flows across all names ex Samsung and Hynix.
Turnover ripping higher but passive ticket still screens extreme versus DTV and shares out, so positioning should front run Square, Isu Petasys, and Jusung given high inclusion odds.
Into rebalance window, expect flows rotating into deletes and legacy names hit by Square driven weight compression. Not typical setup, positioning likely front runs schedule, treat as live flow event.


2026 H2 Local Largest Passive Flow Event TIGER Semis Top 10 Setup and Flow Breakdown

<ul>
<li>Using FnGuide June float, adds are SK Square, Isu Petasys (FICS semis reclass), Fadu (MKF500 eligibility), and Jeju Semiconductor.</li>
<li>PSK and Doosan Tesna miss the buffer cutoff, Soulbrain and TCK stay in top 24, while S&amp;S Tech, Lake Materials, YCC, and LX Semicon are deleted.</li>
<li>Square and Isu add passive inflow, small caps face outflows, Samsung ElecMech cap reversion drives sell flow, deletions see concentrated impact, Tuesday peak volatility.</li>
</ul>


Using FnGuide June float, adds are SK Square, Isu Petasys (FICS semis reclass), Fadu (MKF500 eligibility), and Jeju Semiconductor.
PSK and Doosan Tesna miss the buffer cutoff, Soulbrain and TCK stay in top 24, while S&amp;S Tech, Lake Materials, YCC, and LX Semicon are deleted.
Square and Isu add passive inflow, small caps face outflows, Samsung ElecMech cap reversion drives sell flow, deletions see concentrated impact, Tuesday peak volatility.


Local Semis Rebalance (Tue/Wed): Trade Setup

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>The annual rebalance of the Korea Value-Up Index will take place at the close of trading on 11 June. There are 20 adds and 19 deletes for the index.</li>
<li>There will be big capping flows for <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> and <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>, leading to one-way turnover of 30% and a round-trip trade of US$1.4bn.</li>
<li>Industrials stocks gain 8 index spots while Information Technology and Consumer Discretionary stocks are net losers with 5 and 3 spots lost respectively.</li>
</ul>


The annual rebalance of the Korea Value-Up Index will take place at the close of trading on 11 June. There are 20 adds and 19 deletes for the index.
There will be big capping flows for Samsung Electronics (005930 KS) and SK Hynix (000660 KS), leading to one-way turnover of 30% and a round-trip trade of US$1.4bn.
Industrials stocks gain 8 index spots while Information Technology and Consumer Discretionary stocks are net losers with 5 and 3 spots lost respectively.


Korea Value-Up Index Rebalance: US$1.4bn Round-Trip Trade Tomorrow

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Korea Value-Up Index will be rebalanced on 12 June. Korea Value Up index is up 234% in the past one year, outperforming KOSPI (up 184%) and KOSDAQ (up 27%). </li>
<li>However, Korea Value Up index has slightly underperformed KOSPI 200 index which is up 238% in the same period. </li>
<li>AUMs of the 13 major ETFs that track the Korea Value Up index rose to 4.0 trillion won as of 9 June 2026 (up 217% from beginning of year). </li>
</ul>


Korea Value-Up Index will be rebalanced on 12 June. Korea Value Up index is up 234% in the past one year, outperforming KOSPI (up 184%) and KOSDAQ (up 27%). 
However, Korea Value Up index has slightly underperformed KOSPI 200 index which is up 238% in the same period. 
AUMs of the 13 major ETFs that track the Korea Value Up index rose to 4.0 trillion won as of 9 June 2026 (up 217% from beginning of year). 


Highlights of the Korea Value-Up Index Rebalance on 12 June

South Korea

SK Square Co., Ltd. operates as an investment company. The Company invests in semiconductors, information and communications technologies, and other industries. SK Square conducts businesses in South Korea.

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SK Square (402340 KS)

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Highlights of the Korea Value-Up Index Rebalance on 12 June

AUMs of the 13 major ETFs that track the Korea Value Up index rose to 4.0 trillion won as of 9 June 2026 (up 217% from beginning of year).

Douglas Kim

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