Shinyoung Asset Management launches K Pure Value Fund, targeting undervalued stocks amid a semiconductor-heavy market

[Financial News] Shinyoung Asset Management is launching a value-investment fund that invests in undervalued companies overlooked by the domestic stock market.
Shinyoung Asset Management said on the 20th that it had launched the Shinyoung K Pure Value Securities Investment Trust (Equity), which seeks out undervalued stocks in the domestic market.
The fund pursues a contrarian value-investment strategy, seeking opportunities in companies whose share prices have yet to fully reflect expectations rather than in market-leading stocks that are attracting widespread attention. It uses financial indicators such as return on equity (ROE) and the price-to-book ratio (PBR) to distinguish companies undervalued because of temporary setbacks from those that have structurally lost their competitiveness.
In particular, it selects companies whose share prices remain undervalued despite steady growth in earnings and revenue, and invests after taking into account factors including shareholder-return policies and the potential to enhance corporate value. It also guards against “value traps”—companies that remain undervalued for an extended period—by examining their business competitiveness and financial structure.
Its diversification strategy is another distinguishing feature. To reduce concentration in a handful of large-cap stocks, the fund limits its investment in any individual stock to 10% or less and diversifies evenly across industries and themes. Rather than track a specific benchmark, it aims for absolute returns, with an annual target return in the 10%–15% range.
The fund is available through Shinyoung Securities, Shinhan Investment & Securities and Hana Securities, with additional distributors expected to be added later.
Kim Hyeong-gwan, head of the Marathon Value Team 1 in the Marathon Value Division at Shinyoung Asset Management, explained: “Many expectations are already reflected in the share prices of companies that have risen significantly, but companies overlooked by the market may still have value that has yet to be reflected in their prices. The key is to find companies with a sufficient margin of safety and wait for their value to be reflected in their share prices, rather than follow where the market’s attention is focused.”

[email protected] Seo Min-ji Reporter