$3 Billion Hedge Fund Bets Samsung’s Woes Are Bad News for South Korea’s Stock Market
- The stock, the biggest Kospi member, has weighed on the market
- Apple revenue-forecast cut is poised to hit Samsung, Hana says
Photographer: SeongJoon Cho/Bloomberg
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For a $3 billion hedge fund, the consequence of analysts growing increasingly pessimistic about Samsung Electronics Co. is clear: South Korea’s stock market is poised to suffer.
That’s why Lime Asset Management Co. is planning to add to bearish bets on the nation’s shares, expanding its long-short equity strategy as a long-only one is unlikely to work this year, according to the firm’s chief executive officer, Jongjun Won. The chipmaker is expected to announce preliminary results on Tuesday, and analysts in Seoul have been rushing to cut their fourth-quarter earnings forecasts, he said.