Korean Small-Caps Punch Above Their Weight

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Korean Small-Caps Punch Above Their Weight

Korean Small-Caps Punch Above Their Weight by Liliana Castillo Dearth and Oliver Lee, AllianceBernstein.

South Korea’s cultural exports are spreading around the globe. While the country’s corporate landscape is dominated by huge conglomerates, we think small-cap companies stand to benefit most from the world’s growing fascination with all things Korean. It might be time for investors to take a closer look.

The Economist magazine recently called Korea “Asia’s foremost trendsetter.” From smartphones to soap operas and from pop music to plastic surgery, consumers across the region—and beyond—can’t seem to get enough “Korean cool.”

So how can global investors join the party? We think the best way to gain exposure to the Korean phenomenon is through local small-cap companies. On recent trips to Seoul, we met with executives from several innovative small firms that produce a variety of in-demand consumer products, and we found that business is booming. In fact, small-cap valuations are at a premium. But profitability has steadily improved (it’s been on the decline at the big Korean conglomerates), and we think there’s plenty of room for further gains.

Bonhoeffer Fund July 2022 Performance Update

Screenshot 27Bonhoeffer Fund's performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more The Bonhoeffer Fund returned 3.5% net of fees in July, for a year-to-date return of -15.8%.   Bonhoeffer Fund, LP, is a value-oriented private investment partnership for . . . SORRY! This content is exclusively for