In the last article following the layout of the boss in the US stock market (Follow the boss to lay out the American Stock Bridge Water Fund: bet on China with real gold and silver), Futu Information introduces the position analysis of the Bridge Water Fund, betting on emerging markets and substantially increasing the position of China-listed stocks is the investment trend of the Bridge Water Fund in the second quarter.

Today, Futu Information will introduce Hillhouse Capital's position analysis. Compared with the investment process of Qiaoshui Fund for decades, Hillhouse Capital, which was founded in 2005, appears to be inexperienced. However, in China's capital market, Hillhouse Capital's strength is not to be underestimated, and the investment case is also quite legendary.

From the initial $20 million, Hillhouse Capital's assets under management have grown exponentially. In 2018, Hillhouse Capital completed a $10.6 billion private equity fund raising, setting a new record for the largest private equity fund in Asia. According to relevant media reports, Hillhouse Capital has more than $60 billion in assets under management in 2018, making it one of the largest investment funds in Asia.

The legendary color of Hillhouse Capital is given by founder Zhang Lei. From investing almost all the money in Tencent and holding it for a long time, to investing US $300 million in JD.com in 2010, to promoting Tencent's strategic investment JD.com, as well as his investments in DiDi Global Inc., Meituan and Airbnb, Zhang Lei's deep understanding of the New economy Company is all reflected.

But Zhang Lei's investment is not limited to the new economy. Hillhouse Capital is also a regular on the shareholder list of traditional companies such as Gree, Midea and China Tower Corporation. In 2017, Hillhouse Capital also led the privatization of established shoe retail giant Belle International, and Zhang Lei became Belle's chairman and runs the shoe business. Topsports International Holdings Limited, who will go public on Oct. 10, is Belle's sports business unit.

In addition, Hillhouse Capital also has a wide investment layout in the field of health care, investing not only in drug research and development enterprises BeiGene, Ltd., Wuxi Apptec, Junshi Biology, but also in hospitals, drugstores, medical artificial intelligence and other sub-areas. In addition to the human-related health industry, Hillhouse Capital has also acquired a large number of pet hospitals to lay out the pet economy.

Hillhouse Capital, which is all-powerful in China's capital market and has a wide range of investment fields, deserves the attention of investors about its investment layout in US stocks and how its positions have changed. Futu Information analyzes its investment trend according to the position data disclosed by Hillhouse Capital to the US Securities Regulatory Commission.

As of June 30, 2019, Hillhouse had a total market capitalization of $7.6 billion in US stocks, an increase of about $1.6 billion from the end of the first quarter and more than double the market capitalization of its positions from $3.7 billion at the end of 2018.

Unlike Bridgewater Fund, which holds a large proportion of the index ETF, Hillhouse Capital's positions are all stocks. Among them, iQIYI, Inc. is the largest position, with a market capitalization of US $1.04 billion, accounting for nearly 14% of the total position. Uber's position is the second largest with a market capitalization of $690 million. BeiGene, Ltd., TAL Education Group, JD.com and other Chinese stocks followed by the market capitalization of their positions.

From the above table, it is clear that Hillhouse Capital has a preference for companies in e-commerce, medicine, education and streaming media, and is dominated by Chinese companies. However, in the top 20 of the position market capitalization, there are also a number of US biopharmaceutical companies, such as BPMC, GOSSAMER BIO, FIBROGEN and APLS.

Compared with the position data at the end of the first quarter, Hillhouse Capital bought new stocks such as Uber, Tesla, Inc., Momo Inc and 58.com in the second quarter. In terms of increasing holdings, Hillhouse Capital bought a lot of shares of companies such as New Oriental Education & Technology Group, Bilibili Inc., NIO Inc., Pinduoduo and TAL Education Group. At the same time, Youxin was reduced, Goldman Sachs Group, Alphabet Inc-CL C, Berkshire and other U. S. stock star companies were cleared.

Based on the analysis of the change of the number of shares held by Hillhouse Capital, the position of Hillhouse Capital is relatively single, and the following more typical stocks are selected to observe the investment trend of Hillhouse Capital with a longer cycle combined with stock price changes.

IQIYI, Inc.: Hillhouse Capital's holdings fluctuated between the second quarter of 18 and the end of the year, but increased significantly at the end of the first quarter of 19, and the trend continued to reach 50.51 million shares at the end of the second quarter. In this range, iQIYI, Inc. 's stock price fluctuates greatly and is still hovering at the bottom recently.

JD.com: as an early investor, Hillhouse Capital still holds 16.38 million shares of JD.com, but this is the result of a reduction of nearly 26% at the end of last year, perhaps affected by negative news at that time, and this share reduction may be at the bottom of JD.com 's share price. Hillhouse Capital is quite different from the Bridge Water Fund analyzed in the previous article on this point.

BABA: in terms of the number of shares held, Hillhouse Capital's investment view on BABA has changed a lot. At the end of the third quarter of 18, it was reduced to only 420000 shares, but gradually increased its position to 2 million shares from the end of 18 to the second quarter of 19. Combined with the stock price trend, the reduction in the third quarter of 18 years and the increase in the fourth quarter can be regarded as accurate.

NIO Inc.: starting from the early primary market, Hillhouse Capital has continued to invest in NIO Inc. for many rounds. However, it was not until the first quarter of 1919 that Hillhouse Capital bought NIO Inc. shares in the secondary market, with a stake of 21.31 million shares, and increased its holdings significantly to 41.93 million shares at the end of the second quarter. However, due to various reasons, NIO Inc. 's recent stock price performance is relatively low, and this part of the stock that Hillhouse Capital has increased its holdings has a large paper loss. However, from the operation of falling and buying, Hillhouse Capital is still very optimistic about the development prospects of NIO Inc..