The Form 13F disclosure document from billionaire investor David Tepper's Appaloosa LP shows that this hedge fund significantly increased its Shareholding in Chinese stocks and Chinese stock funds in the fourth quarter of last year. The specific symbols and quantities of the increased Shareholding are: JD.com 3.17 million shares, Alibaba 1.84 million shares, KE Holdings 0.4 million shares, Baidu 0.1 million shares, PDD Holdings 0.055 million shares, KraneShares CSI China Internet ETF 0.81 million shares, iShares Core MSCI China Index ETF 0.8 million shares. Alibaba remains the largest holding, accounting for 16% of its net Assets.
On Monday, the Form 13F disclosure from billionaire investor David Tepper's Appaloosa LP showed that the hedge fund significantly increased its holdings in Chinese Concept stocks and China stock funds in the fourth quarter of last year. Tepper is one of the renowned bulls on Chinese stocks among hedge fund investors, believing that stocks in the Chinese market are much cheaper than those in the USA. This latest increase highlights his confidence in the Chinese stock market and economy.
The main changes in Appaloosa's holdings of Chinese Concept stocks in the fourth quarter of 2024 are as follows:
$Alibaba (BABA.US)$ Its Hold Positions increased from about 10 million shares at the end of the third quarter to about 11.8 million shares. $JD.com (JD.US)$ The Hold Positions increased from approximately 7.3 million shares to about 10.5 million shares. $KE Holdings (BEKE.US)$ The Hold Positions increased from approximately 2.18 million shares to about 2.57 million shares. In addition, $PDD Holdings (PDD.US)$ increased Shareholding by approximately 0.055 million shares. $KraneShares CSI China Internet ETF (KWEB.US)$ increased Shareholding by approximately 0.81 million shares. $iShares China Large-Cap ETF (FXI.US)$ Increased shareholding by approximately 0.8 million shares.
Alibaba remains Appaloosa's largest heavy stock, with a holding increase of over 18% in the fourth quarter, accounting for nearly 16% of its net assets. Analysts say that Alibaba, which is building its own AI model, has seen its stock price rise nearly 30% since the beginning of this year. Bloomberg pointed out that due to the broader geographical distribution of Alibaba's overseas business, the company may be better able to withstand potential shocks compared to its competitors.
PDD Holdings is the third largest holding under Appaloosa, and the increase in its holdings during the fourth quarter was not significant.
In terms of percentage of holdings, JD.com showed a significant increase among major Chinese Concept stocks, with a quarterly increase of 43%.
As of the end of December, Appaloosa's exposure related to Chinese stocks and ETFs accounted for approximately 37% of its portfolio's market value.
The third quarter positions disclosed last November showed that Appaloosa reduced their Shareholding in Alibaba during the third quarter of last year. As of the end of September last year, Appaloosa's Shareholding in Alibaba decreased by 5%, yet Alibaba remained their largest Shareholding after the reduction.
David Tepper stated in late September last year that one of his big bets after the Federal Reserve cut interest rates was to Buy all China-related Stocks. The strength of China's easing policies exceeded his expectations, marking a comprehensive shift; he had previously made comprehensive purchases of almost all Chinese Large Cap Technology Stocks and mentioned that he might double the investment limit for China-related Stocks. 'I may have said in the past that I would not exceed a 10% or 15% holding limit, but that may no longer be true.'
The latest Form 13F document also shows that as of the end of last year, Appaloosa held $NVIDIA (NVDA.US)$ The Hold Positions increased from 0.625 million shares at the end of the third quarter to 0.68 million shares, in $Uber Technologies (UBER.US)$ The Hold Positions increased from 1.4 million shares to 1.5 million shares, as well as in $Advanced Micro Devices (AMD.US)$ The Hold Positions increased from 1.1 million shares to 1.2 million shares.
Appaloosa Fund reduced some of its Hold Positions, including: $Meta Platforms (META.US)$ The Hold Positions reduced from 0.625 million shares at the end of the third quarter to 0.49 million shares at the end of the year. $Lyft Inc (LYFT.US)$ The Hold Positions reduced from 15.8 million shares to 13.5 million shares. $Intel (INTC.US)$ The Hold Positions reduced from 2.5 million shares to 1 million shares, and $Amazon (AMZN.US)$ The Hold Positions reduced from 3.2 million shares to 2.6 million shares.
At the beginning of this year, the Chinese market showed stronger resilience, with some Chinese Stocks outperforming those in the USA and Europe:
After the rise of Deepseek, a significant perspective in the current market is that the entire Chinese Assets may need to be reassessed. Deutsche Bank believes that China's manufacturing and service industries occupy a leading position globally, including Outfits, Steel, shipbuilding, telecommunications equipment, electric Autos, and the recently launched DeepSeek, with China's intellectual property being recognized and expanding at an unprecedented rate. It is expected that the 'valuation discount' of Chinese Stocks will disappear, and profitability may exceed expectations due to policy support for Consumer spending and financial liberalization.
Hedge funds have a subtly changing attitude toward Chinese Stocks. According to Goldman Sachs' latest Prime Services data, a moderate net Buy of Chinese Stocks (including onshore and offshore) was observed in January, indicating an increase in risk appetite.
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