Multiple foreign institutions have started to concentrate on raising Chinese concept stocks.
From May 14 to 16, Alibaba, JD, Baidu and other Chinese Internet companies released their financial reports for the first quarter of 2024 and the fourth quarter of 2024, respectively, with bright results.
Encouraged by this performance, on May 16th Eastern Time in the United States, Chinese concept stocks collectively erupted, and the Nasdaq China Golden Dragon Index closed up 2.49%, reaching a new high since September 2023.
At a time when popular Chinese concept stocks are all booming, the behavior of many overseas investors aggressively increasing their holdings in Chinese concept stocks in the first quarter has also been exposed.
According to the first quarter position report (13F) disclosed by the Securities and Exchange Commission (SEC), Michael Burry, the prototype of "Big Short", continued to increase his holdings in JD.com and Alibaba, and established a new position in Baidu in the first quarter; Another well-known American billionaire investor and hedge fund legend, David Tepper, has doubled his bets on Alibaba, Pinduoduo, Baidu, and iShares China Large Cap ETFs, while also building a new position on JD.com.
In addition, according to statistics from a reporter from Pengpai News, during the first quarter of 2024, Chinese assets also gained the favor of multiple international investment institutions such as Jinglin Asset, Hillhouse Asset, and Gaoyi Asset. It is worth mentioning that among the top ten heavy holdings of Gaoyi Asset in the first quarter, Chinese concept stocks accounted for as high as 90%.
Baidu builds a warehouse for the prototype of "Big Short"
On May 15th local time, according to the Securities and Exchange Commission (SEC) disclosure, Scion Asset Management, a hedge fund managed by Michael Burry, a well-known Wall Street fund manager and prototype of Big Short, submitted its first quarter position report (13F) as of March 31, 2024.
Overall, during the first quarter of 2024, he reduced his portfolio position from 25 to 16. The total value of his assets increased from approximately $95 million to approximately $103 million.
According to Whalewisdom, a 13F data platform, as of March 31, 2024, the company added 5 new stocks and increased its holdings by 11 in the first quarter of this year.
Specifically, Bury increased JD's holdings from 200000 shares to 360000 shares. Currently, JD's total market value of holdings is 9.8604 million US dollars and it ranks as the largest heavily held stock. His bet on Alibaba has increased from 75000 shares to 125000 shares. Currently, the total market value of Alibaba's holdings is $9.045 million, ranking it as the second largest holdings.
A reporter from Pengpai News found that JD.com and Alibaba have occupied the top two major holdings of Scion Asset Management for two consecutive quarters. As of the close on May 16th, Alibaba's US stock market rose 7.05% to $86.70; JD.com closed up 1.93% at $34.27.
It is worth mentioning that in the first quarter, Bury also built a new 40000 shares in Baidu. Currently, Baidu's total market value of holdings is 4.2112 million US dollars, accounting for 4.07% of its holdings and ranking 14th among the heavy holdings.
Alibaba's first promotion to become the largest holding stock of a well-known investment giant
On May 15th local time, another hedge fund manager worth $12 billion, David Tepper, managed by Appaloosa Management, also released the latest 13F position report. According to regulatory documents, as of March 31, 2024, the total holdings of Apalusa Management Company were $6.755 billion, with the top ten holdings accounting for 64.70% of the total holdings.
According to Whalewisdom, a 13F data platform, as of March 31, 2024, Tepper's investment portfolio consisted of a total of 39 stocks, with 7 new stocks and 6 additional stocks added in the first quarter of this year. A reporter from Pengpai News found that multiple Chinese stocks are one of the key investment directions for Taiper.
Among the top ten heavyweight stocks, four individual stocks have increased their holdings, namely Alibaba, cloud computing services and database software giant Oracle, Pinduoduo, and Baidu. Among them, Chinese concept stocks have already occupied three seats.
Specifically, during the first quarter of 2024, Alibaba was significantly increased its holdings by 6.9 million shares, bringing the total number of shares to 11.25 million. Currently, the total market value of its holdings is 814 million US dollars, accounting for 12.05% of the investment portfolio. This is the first time Alibaba has been promoted to the top heavy holding stock since being bought by Tapper in the second quarter of 2022.
Meanwhile, since being first bought in the second quarter of 2023, Pinduoduo and Baidu have entered the top ten heavily held stocks for the first time in the first quarter of 2024. Among them, Pinduoduo has significantly increased its holdings by 1.325 million shares, with a total of 2.1 million shares. Currently, its total market value is 244 million US dollars, ranking it as the ninth largest heavily held stock; Baidu has also increased its holdings from 625000 shares to 1.8 million shares, with a total market value of $190 million, ranking it as the tenth most heavily held stock.
On the other hand, if viewed from a scale perspective, iShares China Large Cap ETF is the third largest individual stock that Tepper has invested in this time. As of the end of the first quarter of 2024, Teper has purchased 6.375 million shares of this ETF, accounting for 2.27% of the investment portfolio, with a total market value of approximately $153 million.
In addition, Taiper also established a new position in JD.com with 3.6499 million shares in the first quarter. Currently, JD.com has a total market value of 9.9697 million US dollars in its holdings, accounting for 1.48% of its total holdings and ranking it as the 21st largest heavy holdings.
Chinese assets are favored by multiple foreign-funded institutions
Recently, several international investment institutions, including Greenwood, a private equity firm worth billions, HHLR Advisors, and Perseverance Asset Management International, have disclosed their US stock holdings as of the end of the first quarter of 2024.
Pengpai News reporters have found that several Chinese concept stocks, including Alibaba, JD.com, Baidu, and Pinduoduo, have become key betting targets for multiple international investment institutions.
Taking Jinglin Asset as an example, as of the end of the first quarter of 2024, the company's top ten heavy holdings in the US stock market were Facebook parent company META, Pinduoduo, Microsoft, NetEase, DOORDASH INC, TSMC, Nvidia, New Oriental Education, Futu Holdings, and Manbang Group, with Chinese concept stocks still dominating.
It is worth mentioning that the company established its first holdings in Tencent Music, Alibaba, JD.com, and Ctrip in the first quarter of 2024, with holdings of 1.46 million shares, 57100 shares, 170200 shares, and 102500 shares, respectively.
On the other hand, overall statistics from Whalewisdom, a 13F data platform, show that as of the end of the first quarter of 2024, Hillhouse's top ten holding targets were Pinduoduo, Baekje Shenzhou, Shell, Legendary Biology, Microsoft, AMD, Amazon, Saffles, Danaher, and TAKE-TWO interactive software, with a concentration ratio of 84.57%.
Among them, Pinduoduo had the highest increase in holdings. In the first quarter, Hillhouse increased its holdings of Pinduoduo by over 1.68 million shares, an increase of 16.62% compared to the previous quarter. At the end of the first quarter, its market value was nearly 1.371 billion US dollars, making it Hillhouse's largest heavy holdings. However, as Hillhouse made a big purchase in the first quarter, Pinduoduo's proportion in the investment portfolio actually decreased from 29.81% in the previous quarter to 25.28%.
According to the 13F report released on May 15th by international investment institutions under Gao Yi Asset Management, as of March 31, 2024, its investment portfolio value was 554 million US dollars. In the first quarter, it added three new stocks and increased its holdings in 10 stocks, with the top ten holdings accounting for 87.56% of the total holdings.
Overall, among the top ten heavily invested stocks of Gaoyi Asset in the first quarter, except for Microsoft, the eighth most heavily invested stock, the rest are Chinese stocks, with Chinese concept stocks accounting for up to 90%.
Among them, Pinduoduo, Zhongtong Express, Huazhu, iQiyi, NetEase, Yum China, Wuxin Technology, and Beike have all increased their shareholding numbers. Specifically, Pinduoduo's holdings increased by 75.14%, Huazhu's holdings increased by 116.25%, Yum China's holdings increased by 843.09%, and Beike's holdings increased by 206.80%.
Although Tencent Music has reduced its holdings by 33900 shares, it still ranks fifth in terms of heavy holdings, with a total market value of $39.0462 million and a holding ratio of 7.05%.