Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Short-Term Reverse Flow Trading on SK Telecom

MSCI Korea Standard: Constituents with Index Up/Down-Weight in May SAIR

SK Telecom Nearing Zero Foreign Room &  May Spark Alternative Trading for KT Corp

SK Telecom/KT Corp LONG SHORT on the MSCI SAIR Event

SKT FIF-Adjustment Passive Play: SK Square ADS Refund May Kill It

Overlooked Aspect About MSCI's SKT Foreign Room Calculation

The Blockchain Delusion. A (Mostly) Bearish Investment Thesis.

Clepsydra Capital

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

Event-Driven

<ul>
<li>ADRs are traded at a significant premium when the foreign room for underlying shares is exhausted. This is the pattern that KT showed in 2018.</li>
<li>SKT's foreign room is currently 1.85%. That is, the burnout rate is 98.15%. Only about 2M shares need to be burned to hit bottom. This is 0.91% of SO.</li>
<li>The shortage of SKT ADRs is likely to intensify, which in turn suggests that the ADR premium may rise further.</li>
</ul>


ADRs are traded at a significant premium when the foreign room for underlying shares is exhausted. This is the pattern that KT showed in 2018.
SKT's foreign room is currently 1.85%. That is, the burnout rate is 98.15%. Only about 2M shares need to be burned to hit bottom. This is 0.91% of SO.
The shortage of SKT ADRs is likely to intensify, which in turn suggests that the ADR premium may rise further.


Trading Opportunity Coming on SK Telecom ADR Premium