Chan Lee and Albert Yong presented their in-depth investment thesis on Insights into Korea at Asian Investing Summit 2016.
Update on Korea: Korea’s level of sovereign debt (34.5% of GDP) is one of the lowest amongst developed economies. The Korean government had a budget surplus in nine of the past ten years. The three major credit rating agencies, S&P, Moody’s and Fitch, upgraded Korea to its highest ratings since the country was first rated in 1986. Korea has been consistently achieving large trade surpluses despite the global economic slowdown and the substantial weakening of Japanese Yen. Korean corporations have improved all three components of ROE: asset turnover, financial leverage and net margin over the past several years. The Centre for Economics and Business Research (CEBR), a UK-based think tank, recently predicted that Korea would become the 7th largest economy in the world by year 2030. Korea has a top-class infrastructure and one of the highest Internet/mobile penetration rates in the world; Korea is also ranked as the most innovative country by Bloomberg in 2016. The Korean industry structure is well diversified while most emerging economies are disproportionately concentrated in a few dominant industries. The Korean stock market has approximately 2,000 companies with total market capitalization of US$1.2 trillion.
About the instructors:
Chan H. Lee is the co-founder and a Managing Partner of Petra Capital Management. Since inception in fall 2009, its Petra Korean Value Equity Strategy has returned 23.7% annualized, net of all fees to investors. Chan is constantly on the lookout for mispricing opportunities and special situations where investors can profit handsomely from a subsequent change of valuation. Chan believes that Korea offers numerous investment opportunities for activist investors. Prior to co-founding Petra, he worked as an investment banker and corporate attorney for more than 10 years in Korea. Chan’s career has focused on the analysis and execution of mergers, acquisitions, joint ventures, restructurings and debt and equity financings across a broad range of industries. Chan received his JD from the UCLA School of Law and his BS in Business Administration from the University of California at Berkeley where he was a member of Beta Gamma Sigma.
Albert H. Yong is a Managing Partner and the CIO of Petra Capital Management, an investment advisory and portfolio management firm based in Seoul, Korea which focuses on undervalued Korean public companies whose market prices are significantly discounted to intrinsic value. Albert believes that the Korean stock market offers exceptional value investing opportunities because many Korean companies are still cheaply valued compared to their earning power and balance sheet. Albert utilizes a disciplined and patient deep value investing approach to seek superior risk-adjusted returns with limited volatility and bases his investment decisions on detailed, research-based analysis and thorough due diligence. Prior to co-founding Petra, Albert was a Managing Director and the CIO of Pinnacle Investments and a Vice President of Pan Asia Capital where he was in charge of managing the Korean equity portfolio. Albert received his MBA from the UCLA Anderson School of Management and his BS in Electrical Engineering from Seoul National University.
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