Investing in High-Quality Mid-Cap Stocks Growing into Large-Caps... 128% Return Since Inception

Recorded a 8.10% Return in the Last Month... Investing by Discovering Undervalued Companies

[Asia Economy Reporter Kum Boryeong] A fund that invests in high-quality mid-cap stocks growing into large-cap stocks and delivering stable performance is gaining attention.

Samsung Asset Management announced on the 14th that the 'Samsung Mid-Small Cap FOCUS Fund' has achieved a return of 127.92% as of the 13th since its inception in 2007.

This fund invests in high-quality mid-cap stocks that grow into large-cap stocks in response to changes in the world. It is based on long-term investment and follows the principle of investing in value stocks with growth potential.

The performance has been stable. According to FnGuide, the recent 1-month return as of the previous day is 8.10%, and the 3-month return is 30.24%. The fund size is approximately 500 billion KRW. A Samsung Asset Management official explained, "Despite numerous changes such as the European financial crisis and the global economic crisis, the fund has overcome the market and maintained stable returns," adding, "Although it struggled in the short term due to the sharp decline in the global stock market following the outbreak of COVID-19, it has recently shown signs of recovery."

When selecting stocks, the focus is on individual company analysis rather than market conditions. The fund actively reflects the future value of companies by paying attention to 'lifestyle changes.' It invests in companies with good business models rather than cheap prices. Monopoly business power, brand, cash flow, and competent management are the main criteria for selecting companies.

In addition, the fund also discovers and invests in undervalued companies. These are companies expected to continuously generate profits but are currently in the worst phase of their business cycle. Contrarian investment is also practiced by selling stocks when prices surge sharply due to short-term positive factors relative to earnings. To achieve excess returns, the fund flexibly adjusts the investment ratio in large-cap companies. Conversely, it avoids investing in micro-cap stocks that can be shaken by small market changes.

Since its launch, the fund has been managed with a consistent investment strategy without changing fund managers. A research organization segmented by industry supports stable management. Min Sua, head of the Value Equity Division at Samsung Active Asset Management, which manages this fund, said, "The basics of investment are buying 'good assets' at 'good prices,'" adding, "We discover good assets and hold them for a long time to maximize the compound effect and maintain stable performance."

He continued, "Many mid-sized Korean companies are in the early stages of globalization based on solid technology and competitiveness," adding, "We discover innovative companies with growth potential and invest in them for more than 2 to 3 years."

This content was produced with the assistance of AI translation services.