Tcha Partners Korean Activist Strategy (Fund II)
- Marie Boyé
- Mar 3
- 21 min read
In this latest report, I explore the investment philosophy and strategy behind Tcha Partners’ Activist Fund II, a fund dedicated to unlocking value in Korean equities through shareholder activism. Through an in-depth analysis, I break down their approach to corporate governance reform, value-driven investing, and engagement strategies that drive real change.
I discuss the fund’s investment process, how they identify undervalued opportunities, and the catalysts that guide their activist campaigns. The report also features a detailed case study on Namyang Dairy, showcasing how HK Kim successfully navigated corporate governance challenges to deliver strong investment returns.
To complement this analysis, I examine fund performance, risk management, and portfolio construction, offering insights into how the fund has consistently outperformed the KOSPI while maintaining a low correlation to broader market trends.
This research is based on extensive interviews, data analysis, and firsthand insights, giving a comprehensive look at one of Korea’s most active players in shareholder activism.
Introduction
I first met HK in Omaha last year, where we spoke about his approach to activism. Curious to learn more, I asked him to send me a paper on his strategy. At the time, I had no idea I had just met one of Korea’s most dedicated activist investors. For HK, activism is more than just an investment approach—it’s a mission. His career, spanning roles as a regulator, an investor in both the U.S. and Korea, and as VP of the Korea Corporate Governance Forum, has been defined by a relentless pursuit of better protections for minority shareholders and stronger corporate governance in Korea.
His story left a lasting impression on me, reinforcing the idea that investing can serve a greater purpose. I encourage you to read his interview, where he shares more about his journey, his activism, and key lessons from his meetings with Warren Buffett, Bill Ackman, and Todd Combs.
His fund, TPAM Fund II, is a minority-stake activist fund focused on Korean equities. The strategy is rooted in a disciplined investment approach aimed at addressing structural inefficiencies in Korea’s corporate landscape. It seeks to unlock value in companies where governance practices, ownership dynamics, or capital allocation missteps have led to significant mispricing. The fund’s goal is to drive long-term value creation while pushing for meaningful corporate governance improvements, ensuring both financial returns and structural change.
