Chan Lee And Albert Yong: Korean Equity IdeasVW Staff
Chan Lee is the Co-Founder and a Managing Partner of Petra Capital Management. Since inception in September 2009, its Petra Korean Value Equity strategy has earned an annualized return of 24.9%, significantly outperforming the Korean index (i.e., KOSPI) which has returned 4.7% annualized during the same period.
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Albert Yong is the Co-Founder and a Managing Partner of Petra Capital Management. Petra Korean Value Equity strategy has substantially outperformed the Korean market as its portfolio is up 159.9% since its inception in September 2009, compared with 21.6% increase by the Korean index (i.e., KOSPI).
Chan Lee And Albert spoke at the 9th Annual Value Investing Congress, also see Shiller’s CAPE Ratio Applied To South Korean Stocks. Below are notes from their presentation.
Highlights from Chan Lee And Albert Yong’s presentation
Returned 24.4% CAGR vs 4% KOSPI Composite Index (INDEXKRX:KOSPI) since Sept 2009
Idea: Nexen Tire Corp (KRX:002350)
Market cap: 1,300B won
Sales: 1700B won
Ebit: 177b eon
Price to book: 1.5x
Stock down as growth stalled
Established in 1958
Auto tire manufactures
20- percent sales cagr since 2007
Global sales American, Korea, Europe
3 factories now. Opening one in Czech Republic
To buy it cheaper, buy preferred shares. They are 60% cheaper. No voting rights but same economic rights
5830 won vs 13950 won for common
3rd way to own a stake: buy holding company stock
Nexen Corporation (KRX:005720) owns 41% of Nexen Tire Corp (KRX:002350). And it makes up 70% of holding company value. 6.4x PE and 0.7x price to book.