Korean Hedge Fund Eyes Chaebol Cash

The video discusses the deployment of cash reserves by Asian companies, focusing on a new fund targeting firms with high EROI and cash holdings. It explores the history of activist funds in South Korea, noting past closures due to the financial crisis. The video highlights current opportunities for corporate governance reforms, especially in light of political scandals involving Samsung. It also considers the potential for South Korea's national pension fund to adopt a more active investment role, influenced by recent regulatory changes and the stewardship code.

What is the primary focus of the new fund discussed in the video?

• Investing in companies with high debt

• Targeting companies with high EROI and cash holdings

• Focusing on startups with innovative technology

• Investing in companies with high dividend payouts

What happened to previous activist funds in South Korea?

• They closed after the global financial crisis

• They thrived during the global financial crisis

• They shifted focus to technology startups

• They merged with international funds

Why are chaebols expected to spend more money this year?

• To reform corporate governance amid political scandals

• To expand into new international markets

• To comply with new international trade agreements

• Due to increased profits from exports

What is the role of South Korea's national pension fund in the current investment climate?

• It is focusing solely on domestic real estate

• It is divesting from all international markets

• It is under pressure to become a more active institutional investor

• It is leading the charge in technology investments

What recent development has influenced the investment strategies of institutional investors in South Korea?

• The launch of a new stock exchange

• A surge in global oil prices

• The adoption of the stewardship code

• The introduction of a new tax policy