Wed, Mar 20, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Dalton led investor group pushes for change in South Korean equities

Friday, February 22, 2019

Bailey McCann, Opalesque New York:

An investor group led by Dalton Investments and including Brandes Investment Partners, KCGI, Value Partners and Ruane, Cunniff & Goldfarb is pushing for change at big South Korean corporates. The group is urging the Korean national pension and the Government of Korea to implement initiatives which will strengthen the governance standards of Korean companies and thereby improve returns across the Korean equities market.

In a letter, Dalton says the group wants Korean companies to focus more closely on shareholder value by increasing dividends and buybacks; and making better decisions about how they spend. "Far too often, companies make investment decisions based on affiliate companies and conglomerates instead of their own shareholders," the letter said. Better management and investor friendly activity could also bolster the investment performance of the national pension plan.

The letter notes that if predictions for a downturn in global growth come true, Korean equities will be even worse off as the market is already defined by "chronic underperformance". The average return for Korean equities is 9 percent, which the investor group claims is the lowest in the world.

"There is a push-pull happening right now between the corporates and what the government wants," says James Lim, a Senior Research Analyst for Dalton's Asia equity research team in an interview with Opalesque. "The government and the pension have said they plan to ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Half of real estate investors are considering investing in opportunity zone funds (OZFs) in 2019[more]

    Laxman Pai, Opalesque Asia: A survey found that 51% of real estate investors were considering investing in opportunity zone funds (OZFs) in 2019, while a further 12% are interested in the longer term. A less widely publicized part of the 2017 Tax Cuts and Jobs Act in the US was the creation

  2. Renaissance founder says hedge fund has overcome Trump tension[more]

    From FT: Renaissance Technologies has overcome internal tensions sparked by the political views of its former co-chief executive Robert Mercer, according to the founder of the $60bn computer-powered hedge fund. Jim Simons, a former cold war codebreaker who is also chairman of the fund, said Re

  3. New Launches: WhiteBox duo plans to launch new event-driven distressed debt fund, UBP unveils credit long/short fund, Man GLG launches high yield fund for ex-Schroders manager Scott, Caisse de d?p?t et placement du Qu?bec launches $250m AI fund, Accel Partners raises $2.5bn across three funds[more]

    WhiteBox duo plans to launch new event-driven distressed debt fund From Bloomberg: Whitebox Advisors LLC colleagues Cindy Delano and Amit Patel have teamed up to form a hedge fund focused on event-driven and special situations that could arise as credit markets tighten. Invictus Glob

  4. Opalesque Exclusive: D.E. Shaw examines the negative correlation[more]

    Bailey McCann, Opalesque New York: The emergence of a negative correlation between stocks and bonds as a result of central bank involvement in the market is not just a significant shift in monetary policy. A new paper from D.E. Shaw argues that it also has profound implications for portfolio con

  5. Tikehau Capital doubles AUM in two years, expands to New York[more]

    Bailey McCann, Opalesque New York: Paris-based Tikehau Capital reported total AUM of over €22bn as of Dec. 31, 2018 - more than doubling its AUM within two years. The alternative asset manager focuses on private debt, real estate, private equity and liquid strategies. Tikehau, had set a goal