Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Index Rebalance

<ul>
<li>Korea passive crowd is missing June KODEX Samsung Group ETF rebalance where Rainbow Robotics likely gets included. It is under the radar with very light positioning and minimal front running.</li>
<li>Rainbow Robotics screens ~2.5% KODEX weight, ~KRW75bn passive demand. Rebalance over 5 days implies ~0.2x DTV daily, but price impact may exceed flows.</li>
<li>Front run FSS May 1 print and Korea passive flows into Rainbow. Position 3 to 5 days ahead of June 1 ETF rebalance, de risk early into flow window.</li>
</ul>


Korea passive crowd is missing June KODEX Samsung Group ETF rebalance where Rainbow Robotics likely gets included. It is under the radar with very light positioning and minimal front running.
Rainbow Robotics screens ~2.5% KODEX weight, ~KRW75bn passive demand. Rebalance over 5 days implies ~0.2x DTV daily, but price impact may exceed flows.
Front run FSS May 1 print and Korea passive flows into Rainbow. Position 3 to 5 days ahead of June 1 ETF rebalance, de risk early into flow window.


KODEX Samsung Group June Rebalance: Rainbow Robotics Inclusion Is a Heavily Overlooked Event