Hedge funds, including Gudo Investment Management, which profited from a 250% increase in the stock of Samyang Foods last year, are betting that there's more to come from the South Korean spicy instant noodle maker, according to a report by Bloomberg.

The Seoul-based hedge fund, which manages KRW57.2bn ($40m), credited its flagship fund’s 175% return in 2024 to Samyan Foods, even as the Kospi Index declined 10%. Larger funds, including Must Asset Management and VIP Research & Management, also attributed their outperformance to the same stock after viral trends, including celebrities embracing Samyang’s spicy Buldak noodles, significantly boosted the brand’s profile.

The report quotes Choi Joon-Chul, co-CEO at VIP Research & Management, as saying in an interview that: “There’s a second stage of growth ahead. Previously, Buldak was sold online only. Now, it’s available through official retail channels in the US and China.”

VIP Research added Samyang to its portfolio in early 2023, as the market was captivated by electric-vehicle battery shares. While the firm has reduced its holding from a peak of 4.9% to lock in some profits, Choi believes the stock still has room to grow, though likely at a slower pace than last year. Samyang is now valued at nearly $4bn.

The stock gained international attention in 2024, with overseas consumers embracing the challenge of its famously spicy noodles. Rapper Cardi B even shared her enthusiasm for the brand, posting on TikTok that she once drove 30 minutes just to find its Buldak Carbonara Ramen.

Analysts remain optimistic about Samyang’s prospects, with 12 buy ratings and no hold or sell recommendations, according to Bloomberg data. DS Investment Securities analyst Jang Jihye has set a target price of KRW1m, forecasting the company’s revenue to reach KRW2.1tn in 2025. Shares climbed as much as 2.6% to 716,000 won on Friday.