KT Stock Up 22% This Past Year, but Does One Fund's $8.3 Million Exit Signal a Shift in Conviction?

Hong Kong-based Oasis Management fully exited its position in KT Corporation (NYSE:KT), selling 400,000 shares worth about $8.31 million, according to a November 13 SEC filing.

What Happened

According to a November 13 SEC Form 13F filing, Oasis Management sold out of KT Corporation (NYSE:KT), disposing of 400,000 shares. The value of the net change in position was $8.31 million.

What Else to Know

Top holdings after the filing:

• NYSE:MTN: $152.22 million (32.7% of AUM)
• NASDAQ:VNET: $35.63 million (7.6% of AUM)
• NASDAQ:STRS: $24.01 million (5.2% of AUM)
• NASDAQ:APLD: $23.69 million (5.1% of AUM)
• NYSE:RBA: $19.86 million (4.3% of AUM)

As of Thursday, shares of KT were priced at $18.97, up 21.5% over the past year and outperforming the S&P 500's 16% gain in the same period.

Company Overview

Company Snapshot

• KT Corporation offers integrated telecommunications services, including fixed-line and mobile telephony, broadband internet, IPTV, media content, and IT solutions.
• The company generates revenue primarily through subscription-based telecom services, data communications, media content delivery, and value-added IT and platform services.
• It serves individual consumers, businesses, and institutional clients in South Korea and select international markets.

KT Corporation is a leading telecommunications provider with a diversified service portfolio spanning fixed-line, wireless, broadband, and digital media platforms. The company leverages its extensive infrastructure and subscriber base to deliver stable recurring revenues and expand into adjacent technology and content markets. Its competitive advantage lies in its integrated service offerings and strong market presence in South Korea's communications sector.

Foolish Take

This move looks less about KT’s past-year share performance and more about how capital is being reallocated inside a concentrated portfolio. When a manager exits a modest position entirely while keeping far larger bets elsewhere, it often reflects opportunity cost rather than outright pessimism.

Operationally, KT is doing several things right. Third-quarter revenue rose 7.1% year over year to roughly KRW 7.1 trillion (up 7%), while operating profit climbed 16%, helped by telecom growth, cloud and data center demand, and real estate development gains. Wireless service revenue grew nearly 5%, 5G penetration totaled 80.7%, and EBITDA remained solid despite higher costs that pushed margins down about 400 basis points to 21.1%. Nevertheless, those are not distress signals, and they help explain why the stock outperformed the broader market over the past year.

But relative appeal matters. Oasis Management’s remaining top holdings are more concentrated in higher-volatility or higher-upside infrastructure, data, and alternative asset plays. Against that backdrop, KT’s appeal as a steady, dividend-oriented telecom with mid-single-digit growth may have faded, even as execution improved.

Glossary

13F AUM: The total value of assets under management reported by a fund in its SEC Form 13F filing.
Net change: The difference in the value or number of shares of a position after a transaction.
Fully exited: When an investor sells all shares of a particular holding, leaving a zero position.
Top holdings: The largest investments in a fund's portfolio, usually by market value or percentage of assets.
Subscription-based services: Business model where customers pay recurring fees for ongoing access to products or services.
Value-added IT services: Technology services that provide additional benefits beyond basic offerings, such as enhanced features or support.
Integrated telecommunications services: A combination of communication services (voice, data, media) provided through a single provider.
Market presence: The extent to which a company is recognized and active within its industry or region.
Outperforming: Achieving better returns or performance compared to a benchmark, such as the S&P 500.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vail Resorts. The Motley Fool has a disclosure policy.