Baek Ji-yoon, CEO of Blash Asset Management, recommended investors diversify their portfolios away from semiconductor-heavy allocations in an interview with Maeil Business Newspaper. She proposed a 50% Samsung Electronics and 50% KOSDAQ biotech and small-cap stocks composition for the second half, stating that all-in semiconductor strategies that drove the first-half market rally will no longer be effective. The recommendation comes as large-cap semiconductor stocks including Samsung Electronics and SK Hynix face expected box-range movements, with liquidity anticipated to disperse from concentrated positions into previously neglected sectors.
Blash Asset Management Proposes 50-50 Portfolio Split
Baek presented a specific portfolio strategy for the second half: 50% Samsung Electronics and 50% KOSDAQ biotech and quality small-cap stocks. She stated that while KOSPI semiconductor large-caps rose significantly in the first half, recovering previous highs in the immediate second half will not be easy. Blash Asset Management specializes in domestic Korean equity investments.
Baek advised that investors need a balanced perspective to respond to box-range market conditions by moving away from semiconductor concentration. She noted that many quality small-cap stocks with market capitalizations below 500 billion won have declined excessively due purely to liquidity factors regardless of sector.
Korean Biotech Sector Shows Price Merit After Decline
Baek identified the domestic pharmaceutical and biotech sector as the central axis for a second-half rebound. She analyzed that despite underperformance in this year's stock market, the fundamental strength and growth potential of pharmaceutical and biotech companies remain intact.
She explained that unlike last year, this year's domestic biotech market saw stock prices decline significantly overall due to the absence of large-scale license-out deals combined with poor liquidity, but noted that price merit has now been maximized. Baek stated that the global anticancer drug and obesity treatment drug markets continue to expand, and the potential of domestic companies holding related core technologies remains valid.
Samsung Electronics Positioned for HBM Market Share Reversal
Baek placed weight on the possibility of a strong Samsung Electronics rebound next year, even if a high point breakthrough in the second half proves difficult. She mentioned that the current semiconductor industry cycle can last much longer than market expectations, and Samsung Electronics is considerably undervalued from a valuation perspective.
She cited HBM (High Bandwidth Memory) market share reversal potential and large-scale shareholder return policies as reasons Samsung Electronics can attempt to break through previous highs next year. Baek stated that Samsung Electronics has higher mid-to-long-term growth potential due to a diversified business portfolio including foundry operations compared to SK Hynix, with HBM market share reversal expected next year based on DRAM production capacity advantages and large-scale shareholder return measures utilizing free cash flow already scheduled.
Baek suggested considering Samsung Electronics preferred shares as one method to maximize the benefits of large-scale shareholder returns. She stated that holding Samsung Electronics preferred shares in a portfolio rather than common shares is effective for properly enjoying the benefits of shareholder returns while securing high dividend yields.
FAQ
What portfolio composition did Baek Ji-yoon recommend for the second half?
Baek Ji-yoon, CEO of Blash Asset Management, recommended a portfolio composition of 50% Samsung Electronics and 50% KOSDAQ biotech and quality small-cap stocks for the second half in an interview with Maeil Business Newspaper.
Why did Baek identify the biotech sector as a rebound opportunity?
Baek explained that domestic biotech stocks declined significantly this year due to the absence of large-scale license-out deals and poor liquidity, creating maximized price merit. She stated that the global anticancer drug and obesity treatment drug markets continue to expand, and domestic companies holding related core technologies retain valid potential for rebounds when momentum such as large license-out deals or clinical trial results materializes in the second half.
