Fund Beating 96% of Peers Says Buy Korean Chip Stocks Hit by War

South Korean memory-chip stocks are still cheap even after the recent rally and are likely to among the biggest gainers on any further signs of deescalation in the Middle East, according to a top-performing fund.

Leading chip firms such as Samsung Electronics Co. and SK Hynix Inc. are poised to benefit the most from progress toward ending the Iran war, said Arjun Jayaraman, a fund manager at Causeway Capital Management, whose $3.4 billion emerging-market fund beat 96% of its peers over the past three years.