Korean Hedge Fund Buys Tech Stocks Betting Worst Over for Market

South Korean hedge fund J&J Investments Co. is increasing its position in Naver Corp. and other tech shares on expectations the nation’s equity market will stage a recovery from a brutal first half.

Choi Kwangwook, the chief investment officer at the Seoul-based firm, which manages 3.5 trillion won ($2.7 billion), said the rally will begin this quarter now that fears of a global economic recession and accelerating inflation have been priced in. The Kospi lost more than a fifth of its value during the first half, making it one of Asia’s worst-performing stock benchmarks.