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Hedge Fund Sounds Alarm on Korea’s $100 Billion Bio Stocks

  • Many health care shares up on hopes for Covid-19 drug: Dalton
  • South Korean market is ‘polarized’ on valuations, Dalton says
Medicine bottles are displayed at the Samsung BioLogics Co. headquarters and production facilities in Incheon, South Korea.

Medicine bottles are displayed at the Samsung BioLogics Co. headquarters and production facilities in Incheon, South Korea.

Photographer: SeongJoon Cho/Bloomberg
Updated on

For those investors lucky enough to have invested in South Korea’s health care sector, now may be the time to reassess the risks.

James Lim, a senior analyst at the $3 billion California-based hedge fund Dalton Investments LLC., is warning that retail investors could pull out of the nation’s equity market on unforeseen events such as an earlier-than-expected curb in the Covid-19 pandemic or a lifting of a short-sell ban. Drug-related shares are especially vulnerable because hopes for a virus cure have made them expensive, according to Lim.