In the third quarter of 2023, two top institutions reduced their holdings in JD.
On November 14th, the US Securities and Exchange Commission (SEC) disclosed TIGER GLOBAL's position report (13F) for the third quarter ended September 30, 2023.
According to statistics, the total market value of Tiger Global Fund's holdings in the third quarter reached $13.6 billion, compared to $12 billion in the previous quarter. The total market value increased by $1.6 billion compared to the previous quarter, with a month on month increase of about 13%. The company added 9 new stocks, increased its holdings of 16 stocks, decreased its holdings of 7 stocks, and cleared 2 stocks in its investment portfolio in the third quarter. The top ten holding targets account for 71.84% of the total market value.
Among the top five heavyweight stocks, META still ranks first, followed closely by Microsoft and Apollo, with Take Two interactive software and Google ranking fourth and fifth, respectively.
From the perspective of changes in holdings, the top five buying targets of Tiger Global Fund include Sea, NVIDIA, Google, Elastic, and Pinduoduo. The main selling targets include Caijie, BOSS Direct Hire, ServiceNow, Pagaya Technologies, etc.
In the investment portfolio of Tiger Global Fund, there are 7 Chinese concept stocks in the top 50, namely JD, TSMC, Pinduoduo, Alibaba, Kanzhun, All Things New Life, and Dingdong Maicai. Among them, JD and Kanzhun were reduced by 11.21 million and 3.65 million shares respectively, with a reduction ratio of 55.21% and 52.48%; TSMC was increased by 190000 shares, with an increase of 10.34%.
It is worth mentioning that among the nine newly established stocks of Tiger Global Fund, Pinduo ranks second, holding approximately 1.37 million shares with a market value of approximately $134 million. Alibaba followed closely, holding approximately 1.48 million shares with a market value of approximately $128 million. In addition, the rebirth of all things and Dingdong's buying of vegetables remain unchanged.
For Chinese e-commerce, the newly established positions of Alibaba and Pinduoduo by Tiger Global Fund seem to be optimistic about the Chinese e-commerce industry, but the continuous reduction of positions on JD.com has made its attitude unclear.
Tiger Global Fund established its first position in JD.com in the fourth quarter of 2014. Although JD.com was reduced by 4.95 million shares in the first quarter of 2022, it still ranks first among Tiger Global Fund's heavy holdings. However, starting from the first quarter of 2022, Tiger Global Fund continued to reduce its holdings in JD. In the first quarter, it reduced its holdings by 4.95 million shares, with a reduction ratio of 9.22%. In the second quarter, it reduced its holdings by 18.24 million shares, with a reduction ratio of 37.42%. In the third and fourth quarters, it continued to reduce its holdings by 670000 shares and 8.05 million shares, with a reduction ratio of 2.18% and 26.95%, respectively. Tiger Global Fund increased its holdings in JD.com in the first quarter of this year, increasing its holdings by 2.27 million shares, with an increase ratio of 10.39%. It continued to reduce its holdings in the second and third quarters, respectively, by 3 million shares and 11.21 million shares.
Overall, Tiger Global Fund has significantly reduced its holdings in JD.com since the first quarter of 2022, resulting in JD.com currently accounting for only 0.71% of its investment portfolio, ranking 12th.
In addition to Tiger Global Fund, another well-known institution has also significantly reduced its holdings in JD.com.
On November 15th, HHLR Advisors, a subsidiary of Hillhouse, released data on US stock holdings as of the end of the third quarter of 2023. Data shows that as of the end of the third quarter of 2023, HHLR's top ten heavyweight stocks were Baekje Shenzhou, Pinduoduo, Shell, Legendary Biology, Microsoft, DoorDash, Saftek, Alibaba, TAKE-TWO Interactive Software, and Amazon. Among the top ten heavyweight stocks, half of them are concept stocks, with market value accounting for over 70%. For Chinese concept stocks, HHLR Advisors also have some underweight operations. During the reporting period, HHLR Advisors significantly reduced their holdings in Alibaba ($107 million), Pinduoduo ($80.6 million), Shell ($80 million), JD ($63.9 million), and Huazhu Group ($54.5 million).
Among them, Hillhouse HHLR Advisors reduced their holdings of nearly 2.1944 million shares in JD in the third quarter, a decrease of 81.35% compared to the previous quarter, and the market value at the end of the third quarter exceeded 14.85 million US dollars.
In fact, since the beginning of this year, investors have generally been bearish about JD's prospects, and the stock price has been halved during the year. In October, at least 7 institutions downgraded JD's rating or target price. For example, Morgan Stanley downgraded JD Group's ADR rating to flat allocation; Macquarie downgraded JD Group's Hong Kong stock rating to neutral, with a target price of HKD 124.