The Republic of Korea chip unit has returned sharply after a rapid rise in the tide of AI, with risks transmitted from the local market to the United States. The heavy warehouse SK Hercules's American fund suffered a significant loss, while the American diaspora, which entered through ETF and cross-border vouchers, was directly exposed to sharp fluctuations in the round.
Single-month losses on hedge funds approximately 67 per cent
According to the Wall Street Journal, a hedge fund managed by a former OpenAI researcher, Leopold Aschenbrenner, had dropped its portfolio value in July by about 67 per cent because of the concentration of the Korean chip unit. It was reported that the Fund had cleared most of the open market stock holdings to repay loans.
The Fund indicated to investors that the portfolio was once close to an unacceptable permanent capital loss. Reuters quoted sources as saying that the SEC was investigating the point of the transaction that triggered the additional bond notice and the record of communication between the Fund and the main lending bank around the use of leverage.
The United States has borrowed the DRAM ETF entrance.
In this turn, the access of American investors to the South Korean chip stock increased significantly in May this year. Interactive Brokers then became the first major United States issuer to open up Korean stock directly to United States clients. Almost at the same time, Roundhill Investments launched an ETF with the DRAM code, mainly for storage chip manufacturers.
In the ETF, Tristar Electronics and SK Hercules together account for almost half of the net fund. It is reported that DRAM ETF attracts money within weeks of its release and is one of the most successful new products in the history of the United States ETF. According to Rundhill Chief Executive Officer Dave Mazza, the product reached private investors mainly through social media.
Korea regulates tight leverage products
On Korean mainland, the bulk accounts for between 60 and 70 per cent of Kospi's daily trade. With the introduction of the first single-stock leverage ETF in May, individual investors were able to scale up their bets on Samsung electrons and SK Hercules, but also to suffer even greater losses in reverse.
Reports indicate that the Korean stock market fell by about 40 per cent in about six weeks, evaporating about $2.5 trillion. The regulator then suspended the approval of new single-stock leverage products and tripled the mandatory cash deposit to approximately $21 million, while expanding mandatory online training for individual investors.
Additional information:As of the latest data, Kospi had rebounded at a low point of about 20 per cent, and the Kospi 200 volatility index fell from 86.18 on 30 July to 56.76.