Hedge Fund Sends Letter to Korea Lawmakers on Stock Value Boost
- Dalton Investments asks Korean authorities to revamp rules
- Dalton’s concerns echo those of Michael Burry, Paul Singer
The Seoul skyline.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
South Korean authorities should take steps to prevent listed companies from treating minority shareholders unfairly in a bid to boost investor confidence in the nation’s stocks and increase their valuation, according to Dalton Investments LLC.
In a letter sent to the Korean government on Dec. 3, James Lim, senior analyst at the $3.2 billion California-based hedge fund, said regulators could impose on a company’s board of directors an obligation to monitor “proportional interests,” which will protect non-controlling shareholders’ interest. Authorities should also push companies to buy back more shares and make investments more efficient, Lim wrote.