Hamco Asset Management (AM) has surpassed the threshold of 250 million euros in assets under management and now has 8,000 participants across its vehicles in Spain and its investment company with variable capital (sicav) domiciled in Luxembourg, with a strategy focused on undervalued companies in South Korea.
"Korea has a lot of good companies trading at low multiples," said the CEO and Chief Investment Officer of the management company, John Tidd, during a meeting with journalists, adding that "there is a long way for the retail investor to buy more" in this market.
The executive explained that this bet is also supported by the existence of a government plan, 'Corporate Value up', aimed at incentivizing companies to increase dividend payments and strengthen share buyback programs, among other initiatives. He also highlighted that, with the rise of artificial intelligence, Korea "has become very fashionable" due to its weight in semiconductors and batteries. "In time, Korea's 'deep value' will be recognized," he stressed.
The management company has two funds: the 'Hamco Global Value Fund', operational since 2019, and the 'Hamco Quality Fund', launched approximately one year ago. Both vehicles have a combined annualized return close to 17% after commissions and expenses, supported by a team of 10 professionals.
The first of these is composed of between 80 and 90 companies, with more than 215 million euros under management and more than 7,200 participants, and is oriented towards "truly very undervalued companies." It is characterized by high turnover, as the team reviews the portfolio monthly. "The more value generation there is, the more turnover," Tidd specified.
In its early days, in 2019, the portfolio was built with energy stocks, such as Argentina's YPF, and broad sectors like tobacco (Imperial Brands), although in the last two years they have concentrated 22.4% of the investment in South Korean 'deep value' firms, including Hankook.
This fund also holds 10.4% in defensive stocks, such as Herbalife or Carrefour, and 7.9% linked to artificial intelligence disruption, with names like Teleperformance or ManpowerGroup.
For its part, the 'Hamco Quality Fund' presents a reduced rotation and lower volatility. It is made up of between 50 and 60 "more expensive" companies and manages more than 38 million euros in assets. Its approach replicates the philosophy of the first fund: 12.5% of the portfolio is concentrated in Korean companies, such as Orion or Youngone, 11.1% in retail (Nojima and JD) and 10.9% in defensive stocks.
Tidd stressed that the firm is confident in continuing to obtain "returns similar to historical ones," around 15%, although without offering guarantees, and highlighted that its products show a very low correlation with benchmark indices, something that "attracts many investors."
However, he warned that, despite Hamco AM having six positive years in a row, "in the next six it will almost certainly not be like that" due to the inherent volatility of stock markets.
Regarding the behavior of retail clients, the CEO clarified that "individuals are operating too much in the market" and that "it is important for clients to think long-term," observing more redemptions than transfers between funds and that "they are not thinking about taxation."