Being value investors seeking undervalued opportunities within Asia, we believe in constantly seeking out investments that offers us the best asymmetrical reward ratio. That said, there are many value investors within the usual Asian countries such as Singapore, Japan, Australia, Hong Kong and now China. However, what about South Korea?
South Korea offers many attractive value investing opportunities. Given the amount of marketing and media coverage, we know that it is irrefutable that there are many Korean companies that have great earnings power – think Samsung. Furthermore, if one delves deeper into these companies, one would realize the solid balance sheet and strong cash flows these South Korean companies possesses. As with every country, each country has its own unique characteristics resulting in an anomaly in market prices.
While we know that Hong Kong is benefiting from China’s growth, China experiencing huge growth (while GDP growth rates have started slowing down, ......