2024-07-14 08:44:29 ET
Summary
- The closed-end Korea Fund has benefited from a narrowing NAV discount.
- Expect more of the same ahead of a potentially catalyst-rich next few months.
- Despite its flaws, KF ticks a lot of boxes as a Korean large-cap play.
Broadly speaking, making money with Korean large-caps hinges on 1) the memory cycle (via the largest holdings, Samsung Electronics ( SSNLF ) and SK Hynix) and 2) unlocking the perennial 'Korea Discount' (actively being addressed via the government's "Corporate Value-Up"). With the closed-end Korea Fund (KF), on the other hand, investors get to profit from a third factor – a narrowing fund-specific discount to net asset value (or 'NAV')....
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Korea Fund: Worth A Look As Discount Narrowing Path Emerges