Samsung Model Portfolio Summary
Core Content
The Samsung Model Portfolio is a strategic investment portfolio that aims to outperform the Kospi index by focusing on undervalued stocks and maintaining a market-neutral sector allocation. The document provides a detailed review of its performance in January and outlines the outlook for February 2017, highlighting key market uncertainties and portfolio adjustments.
Main Points
Market Outlook
- Global and Korean Market Performance: Despite continued global market gains, the momentum has eased slightly due to uncertainties around Trump's policies and Brexit. The Korean market outperformed the global one in January, with the MSCI Korea index rising 2.62% compared to the MSCI All Country World index's 1.94%.
- Kospi Performance: The Samsung Model Portfolio gained 3.30% in January, outperforming the Kospi by 136 basis points.
- Uncertainties in February: Political uncertainties, including those related to Brexit and domestic issues in Korea, are expected to persist. However, the market is unlikely to experience sharp corrections due to improving global macroeconomic conditions and corporate earnings.
- Defensive Strategy: The portfolio takes a defensive approach, avoiding high-beta strategies and focusing on undervalued stocks.
Portfolio Changes
- Sector Adjustments:
- Increased exposure to Consumer Staples (from 5% to 6%), Healthcare (from 0% to 2%), and IT (from 30% to 31%).
- Decreased exposure to Financials (from 14% to 13%), Materials (from 10% to 9%), and Utilities (from 4% to 3%).
- Stock Additions:
- Added NCsoft, Kepco, Hyundai Glovis, Posco Daewoo, Lotte Shopping, and Osstem Implant.
- Stock Removals:
- Removed Kogas, S1, Hyundai Department Store, and Naver.
- Portfolio Beta: The portfolio beta decreased from 1.10 in January to 1.08 in February.
Key Information
Performance Review (January 2017)
| Period |
Samsung (%) |
Kospi (%) |
Relative (%) |
| 1 month |
3.30 |
1.94 |
1.36 |
| 3 months |
3.08 |
2.87 |
0.21 |
| 6 months |
3.58 |
2.46 |
1.12 |
| 12 months |
10.49 |
8.04 |
2.45 |
Portfolio Weightings by Sector (February 2017)
| Sector |
Portfolio (%) |
Kospi (%) |
Diff (%) |
| Consumer Discretionary |
18 |
14 |
4 |
| Consumer Staples |
6 |
8 |
(2) |
| Energy |
3 |
2 |
1 |
| Financials |
12 |
12 |
0 |
| Healthcare |
2 |
3 |
(1) |
| Industrials |
14 |
14 |
0 |
| IT |
31 |
31 |
0 |
Portfolio Changes
| Company |
Weighting (Feb) |
Weighting (Jan) |
Chg (%) |
Performance vs Kospi (%) |
| Added |
|
|
|
|
| NCsoft |
3 |
0 |
3 |
23.6, 10.8, 25.2 |
| Kepco |
3 |
0 |
3 |
(8.0), (19.9), (21.6) |
| Hyundai Glovis |
2 |
0 |
2 |
7.8, (5.8), (21.7) |
| Posco Daewoo |
2 |
0 |
2 |
(3.9), 0.8, 82.6 |
| Lotte Shopping |
2 |
0 |
2 |
0.6, (2.5), (9.0) |
| Osstem Implant |
2 |
0 |
2 |
(2.6), (4.5), (35.3) |
| Increased |
|
|
|
|
| AmoreG |
4 |
3 |
1 |
5.8, (13.5), (10.3) |
| Company |
Weighting (Feb) |
Weighting (Jan) |
Chg (%) |
Performance vs Kospi (%) |
| Removed |
|
|
|
|
| Kogas |
0 |
4 |
(4) |
(5.6), (0.6), 28.1 |
| S1 |
0 |
2 |
(2) |
(2.1), (7.9), (17.6) |
| Hyundai Department Store |
0 |
2 |
(2) |
(13.4), (21.6), (28.1) |
| Naver |
0 |
2 |
(2) |
(1.1), (8.7), 5.0 |
| Reduced |
|
|
|
|
| Posco |
3 |
4 |
(1) |
0.8, 10.2, 52.8 |
| Korea Aerospace Industries |
2 |
3 |
(1) |
(2.3), (8.9), (7.1) |
| Doosan Bobcat |
2 |
3 |
(1) |
(3.3), (1.6), (9.0) |
| Samsung Fire & Marine |
2 |
4 |
(2) |
(1.3), (6.4), (13.8) |
Conclusion
The Samsung Model Portfolio is designed to navigate a volatile market environment by maintaining a market-neutral sector allocation and emphasizing undervalued stocks. The portfolio is expected to remain defensive in February, with a focus on Consumer Staples, Healthcare, and IT sectors, while reducing exposure to Financials, Materials, and Utilities. The performance of the portfolio in January was strong, outperforming the Kospi by a notable margin, and the outlook suggests that the portfolio will continue to adjust based on macroeconomic and political developments.
