Hedge fund allocation to South Korean equities remains high: Net allocation to Korean stocks, which measures the size of hedge fund bets on prices going higher, stands at ~5.0%, the highest in at least 5 years. Gross allocation, which measures total money invested regardless of direction, is at ~2.7%, also the highest since at least 2020. Both metrics have seen a +400% increase over the last year. Despite the KOSPI index falling as much as -20% last week, there was no meaningful selling across hedge funds. This is also in contrast to foreign investors, who have sold -$15 billion of South Korean stocks year-to-date. Hedge funds remain bullish on Korea.(The Kobeissi Letter)