York Capital Management’s Asia hedge fund spinoff, MY.Alpha Management HK Advisors, is raising funds for a new venture aimed at capitalising on South Korea’s corporate value-boosting measures, according to a report by Bloomberg.
The Korea Tactical Fund, launched in October, gained 2.6% in Q4 2024 despite the Kospi Index falling 7.5% amid political turmoil and a brief martial law declaration, according to a source familiar with the matter.
South Korea’s “Corporate Value-up Program,” introduced in 2023, seeks to address the longstanding “Korea discount” by urging companies to adopt mid- to long-term return on equity targets and improve governance in return for tax benefits. Historically dominated by family-run conglomerates, or chaebols, such as Samsung Electronics and Hyundai Motor, these entities accounted for nearly 50% of GDP and 60% of Kospi 200 market value in 2022. Critics argue that their dominance hampers market transparency and growth, contrasting with the robust rallies seen in Japan and Taiwan. In 2024, the Kospi declined 10%, while Japan’s Topix and Taiwan’s Taiex surged by 18% and 28%, respectively.
MY.Alpha Managing Director Jon Jhun expressed optimism, saying governance reforms in South Korea are progressing meaningfully this time.
Led by Masahiko Yamaguchi, MY.Alpha, which launched in 2021, manages about $2bn across Asia- and Japan-focused funds. Its Korea fund began with $60m in combined internal and external capital, targeting gains from early-stage governance reforms.
Japan’s corporate governance reforms, initiated in 2014, have provided a roadmap. Measures encouraging efficient capital use and enhanced shareholder returns helped the Topix deliver a 9.5% annualised return over the past decade. MY.Alpha’s Japan Focused Fund returned nearly 22% in 2024, outperforming peers and prompting plans to limit new investments by mid-2025.
MY.Alpha’s flagship Asian Opportunities Fund saw a 34% return in 2024, driven by trades in mispriced stocks and corporate events across Japan, China, South Korea, and India. Significant contributors included Japanese firms like Fancl and Fujikura, alongside Indian fintech Paytm and Chinese companies Midea Group and Chindata Group.
Japan’s 2025 outlook anticipates more corporate activity following $230bn in mergers and acquisitions last year. Notable developments include Seven & i Holdings considering a $45bn privatisation offer and Honda Motor exploring a merger with Nissan to form the world’s third-largest automaker.
