Asian fund managers positive on Korea
There’s room for growth in Korea’s hedge fund market. At the recent 4th annual Hedge Fund Japan congress, organized by IQPC, fund managers interviewed by Finance IQ were nothing but positive on Korea’s potential as a Hedge Fund market.
Ed Rogers, Chief Executive Officer of Rogers Investment Advisors, believes that in the medium term the opportunities in Korea will be abundant.
“Over time, between three to seven years, Korea will be a fantastic market. There have a number of well educated individuals, and there is a significant accumulation of wealth there. As far as that is concerned, Korea looks a lot like Japan, but they still do not have the depths of trading instruments and trading strategies in Korea that they have in Japan and that will probably hold Korea back a little bit,” he said.
And Rogers isn’t the only Hedge Fund advisor who is optimistic about the potential in Asia’s fourth largest economy. Paul Heffner, Chief Executive Officer of Gen 2 Partners, explained that because of where Korea is positioned, fund managers are very excited, not only from the equity side, but also from the credit side.
On why the potential in Korea is so large, Heffner said that, Korea is benefiting not only from the China catalyst but also rural reform in China, “If you look at the rural reform that is going on in China, as farmers are able to ‘equitize’ their farms and move into the city, one of the first things that they start buying are flat screen televisions. Which is a play on LG or Samsung,” he said.
“So you begin to see an interesting play on Korea through China. The same goes for shipping, a lot of shipping is driven by commodities, 40% of commodities is driven by China and China is using ships that are made in Korea. So this is how Korea is benefiting from this,” added Heffner.
“Finally, the Korean automobile industry has produced some of the best cars over the last 20 years. And as a brand that have done exceptionally well. So if you look at all the cars that are actually taxis in China, a lot of them are Hyundai’s,” explained Heffner.
To watch the full unedited interviews with Ed Rogers and Paul Heffner, please drop us an email to enquiry@iqpc.com.sg . For all other information, please contact Rani Kuppusamy at rani.kuppusamy@iqpc.com.sg
Issued By: bryan.camoens
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