Portfolio Overview
The South Korea Portfolio continues to focus on high-quality companies across key sectors of the Korean economy, including aerospace, electric equipment, semiconductors, and energy. As of August 10, 2026, the portfolio holds eight positions, with a mix of winners and laggards.
Performance Highlights
Korea Aerospace Industries (HWM) remains the standout performer, up 15.07% since its pick on June 8. The company benefits from strong defense spending and export orders. Hanon Systems (CSCO) has also gained 9.17%, supported by robust demand for automotive thermal management. Doosan Enerbility (NTDOY) is up 1.71% since its recent pick, reflecting steady progress in nuclear and renewable energy projects.
On the downside, SK Hynix (SKHY) has fallen 20.18% from its first quote, pressured by memory chip price declines and global tech sell-offs. Sanil Electric (AEP) is down 3.10%, likely due to profit-taking after a strong run earlier in the year.
Key Drivers and Risks
The portfolio’s performance is closely tied to global trade, semiconductor cycles, and geopolitical developments. The memory chip downturn is a key risk for SK Hynix, while aerospace and defense spending provides a tailwind for Korea Aerospace. The portfolio has moderate concentration in industrials and tech, which could amplify volatility. Additionally, the Korean won’s exchange rate and export competitiveness remain important factors.
Position Management
All positions are within their minimum holding period (protected), and no thesis-breaking events have occurred. Therefore, no positions are closed this week. We continue to monitor SK Hynix closely for any signs of fundamental deterioration, but the current decline is considered cyclical and not a reason to exit.
What to Watch
- Semiconductor pricing and demand trends, especially for memory chips.
- Defense and aerospace order announcements from Korea Aerospace.
- Global EV and battery demand affecting Samsung SDI and Hanon Systems.
- Energy policy shifts and nuclear power developments impacting Doosan Enerbility.
- Currency movements and trade policy changes.
Conclusion
The South Korea Portfolio remains well-positioned for long-term growth, with a balanced mix of cyclical and defensive names. We will continue to review positions as new data emerges, and we remain disciplined in our approach to closing positions only when warranted.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research or consult a financial advisor before making investment decisions.