Key Takeaways
- • Verdad Advisers LP, a Boston-based hedge fund, plans to launch its first South Korea fund in February, targeting $150 million in assets under management at launch.
- • The fund will focus on undervalued small- and mid-cap Korean companies, applying the same strategy used for its Japan SMID Value Fund, which launched earlier this year.
- • Verdad founder Dan Rasmussen attributes the interest to Korea's corporate governance reforms combined with compressed valuations, which are drawing global investors.
Summary
Boston-based hedge fund Verdad Advisers LP is planning to launch its first South Korea fund in February, according to Bloomberg. The move signals that the country's corporate governance reforms, together with compressed equity valuations, are beginning to attract some global investors to the Korean market.
The fund will invest in undervalued small- to mid-cap companies listed in Korea, applying the same strategy Verdad used for its Japan SMID Value Fund, which launched earlier this year. Verdad founder Dan Rasmussen discussed the plans in an interview on Nov. 2. The fund is targeting $150 million in assets under management at launch.
The launch reflects a broader investor focus on Korean equities as the government pursues governance changes aimed at improving shareholder protections and corporate transparency. Verdad's approach emphasizes value-oriented, smaller-cap names, a segment where valuation discounts have been most pronounced.
The fund will invest in undervalued small- to mid-cap companies listed in Korea, applying the same strategy Verdad used for its Japan SMID Value Fund, which launched earlier this year. Verdad founder Dan Rasmussen discussed the plans in an interview on Nov. 2. The fund is targeting $150 million in assets under management at launch.
The launch reflects a broader investor focus on Korean equities as the government pursues governance changes aimed at improving shareholder protections and corporate transparency. Verdad's approach emphasizes value-oriented, smaller-cap names, a segment where valuation discounts have been most pronounced.
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