Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Sharing Feedback Received from KRX and FnGuide on Fadu’s Passive Inclusion Story

What Fadu’s Q1 Return to Profit, Disclosed Today, Means for Its Passive Flow Dynamics

Why Fadu and Taihan Missed Out on KQ150 Inclusion

KOSDAQ Active ETFs’ Massive Retail Flows & June 150 Rebalance Angle

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Event-Driven

<ul>
<li>KRX signals: even if Fadu’s management is found guilty, the stock won’t enter a listing eligibility review, since the trial concerns criminal issues, not listing-triggering financial red flags.</li>
<li>KRX finally cleared Fadu’s listing review after the indictment; with no financial red flags, June KOSDAQ 150 inclusion looks likely, and blocking it now is hard to justify.</li>
<li>Fadu’s KOSDAQ 150 inclusion could trigger massive passive inflows, roughly KRW 220B or 7% of its SO, at around 1.1–1.2% index weight.</li>
</ul>


KRX signals: even if Fadu’s management is found guilty, the stock won’t enter a listing eligibility review, since the trial concerns criminal issues, not listing-triggering financial red flags.
KRX finally cleared Fadu’s listing review after the indictment; with no financial red flags, June KOSDAQ 150 inclusion looks likely, and blocking it now is hard to justify.
Fadu’s KOSDAQ 150 inclusion could trigger massive passive inflows, roughly KRW 220B or 7% of its SO, at around 1.1–1.2% index weight.


Clarifying the KRX’s Handling of the Fadu Situation