Bonhoeffer Capital Management, an investment management firm, released its first quarter 2023 investor letter, a copy of which can be downloaded here. In its first quarter letter, the fund mentioned its main country exposures are South Korea, the United States, the United Kingdom, South Africa, the Philippines, and Latin America. Notably, the fund has significant industry exposures in telecom/media, real estate/infrastructure, and consumer products. The fund is targeting sectors within the chemicals, leasing, distributors, housing, and specialty finance sectors. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q1 2023 investor letter, Bonhoeffer Capital Management mentioned KT Corporation (NYSE:KT) and explained its insights for the company. Founded in 1997, KT Corporation (NYSE:KT) is a Seongnam-si, South Korea-based telecommunications company with a $5.8 billion market capitalization. KT Corporation (NYSE:KT) delivered a -13.63% return since the beginning of the year, while its 12-month returns are down by -18.80%. The stock closed at $11.57 per share on June 23, 2023.
Here is what Bonhoeffer Capital Management has to say about KT Corporation (NYSE:KT) in its Q1 2023 investor letter:
“KT Corporation’s growth had been driven by dividends which have increased by 3% per year over the past 10 years. It has had no earnings growth, and its multiple has contracted about 3% per year. Its total return has been 0% per year over the past 10 years. Over this period of time, KT’s RoE has declined from 11% to 9%, and the business has had challenges growing. Currently, KT has a 6% dividend. KT’s EPS growth is estimated to be 2-3% per year higher based upon analysts’ estimates over the next few years. This growth rate, combined with the dividend, results in an 8% expected return absent any type of spinoff activity which could increase the value more substantially. Management has not discussed any plans for spinoffs despite the potential to increase value substantially. As a result of this type of analysis, we sold KT and purchased TerraVest, which has higher growth. Additionally, TerraVest’s value is not dependent upon a spinoff event, which KT Corporation management has not discussed.”
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Our calculations show that KT Corporation (NYSE:KT) was not able to secure a spot on our list of the 30 Most Popular Stocks Among Hedge Funds. KT Corporation (NYSE:KT) was in 10 hedge fund portfolios at the end of the first quarter of 2023, compared to 10 funds in the previous quarter. KT Corporation (NYSE:KT) delivered a -18.80% return in the past 3 months.
Earlier this year, we also discussed KT Corporation (NYSE:KT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q1 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
