[Michael Burry’s disciples warn that there is a “value trap” in the Korean stock market] September 30th, Michael Burry’s disciples warned that there is a trap behind the low valuation of Korean stocks: most of the value of these stocks is often out of reach of minority shareholders. Phil Clifton, founder of Cupertino, Calif.-based Pomerium Capital Management LLC, met with about two dozen companies in South Korea and Japan during his August trip. According to a September 29 letter to investors seen by the media, he was convinced after returning to China that investing in South Korea "needs to be extremely cautious and pay close attention to the management's incentive mechanism." "The Korean stock market looks like a capitalist paradise at first glance," he wrote in the letter, filled with companies with healthy profit margins and solid growth. However, he pointed out that there is often a misalignment between the interests of shareholders and the actual operators of enterprises. Clifton said that although many Korean companies are valued at a significant discount to their global peers, the extra value often prevents minority shareholders from truly benefiting - especially in those companies where the founding family retains absolute control.