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Strategies & Market Trends : Thai Funds -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (93)	3/2/1998 3:09:00 PM
From: alan lewis	Read Replies (1) \| Respond to of 107

I am also short one of the ADRs - SKM. I thought about shorting all 3, but kEPs premium was much lower, and the volatility of a deep cyclical steel company - PKX scared me to short it. That's not to say that I won't - just that at the time I initiated my short, SKM seemed the best bet. I have no rational explanation for the persistence of these "premiums", to the extent they exist. It concerns me too, but I am just going to trust my judgment, and I believe this will work out. One question, why use FAK to hedge your short position, and not just use only MAKOX? While FAKs premium is the smallest of the 4 CEFs, it still is a premium. And while I'm not sure this is correct, I read somewhere that FAK has the smallest percentage of its holdings in lower priced "local" shares in Korea, making it the CEF that least deserves a premium.

To: peter michaelson who wrote (93)	3/3/1998 8:06:00 PM
From: Polartee	Read Replies (1) \| Respond to of 107

Where did you hear that the Korean government is committed to allowing 100% foreign ownership of equity by end of 1998? That would be going beyond IMF requirements. The IMF program only requires them to move to 55%. It was 26% until it was raised to 50% at the end of last year, ref. the IMF stand-by arrangement: imf.org Also, for an excellent web site on the Asian collapse try this link. It has lots of economics content and country specific material and links: stern.nyu.edu