Source: Broker China
Author: Shi Qian
Recently, the “love” of foreign investors for Chinese stocks is a bit beyond imagination.
Last night, there was a collective explosion of US stocks and Chinese securities.$NASDAQ Golden Dragon China (.HXC.US)$The closing surged 2.49%, a record high since September 2023. Next IPO$JIADE (JDZG.US)$At one point, the intraday increase was over 180%, and at the close of the session, the increase was 104.42%;$Alibaba (BABA.US)$It closed up more than 7%, and even Citron, the former “main force of the Air Force,” began to sing a lot. Hong Kong stocks opened this morning and continued their strong performance.$Hang Seng Index (800000.HK)$0.77% higher$Hang Seng TECH Index (800700.HK)$1.55% higher$BABA-SW (09988.HK)$At one point, it rose more than 7%.
However, that's not all. The “big short” prototype Michael Burry also increased its pairs last quarter$JD.com (JD.US)$and Alibaba's bet. He increased Alibaba's holdings from 75,000 shares to 125,000 shares, and JD's bet from 200,000 shares to 360,000 shares. Another $12 billion hedge fund manager, David Tepper (David Tepper), also concentrated his largest holdings in technology and the Chinese market, with Alibaba accounting for 12.05% of the investment portfolio.
Interestingly, according to QUIVER QUITATIVE, a data website specializing in stock trading research for members of Congress, US Congressman Josh Gottheimer (Josh Gottheimer) bought shares of the Chinese company Tencent on April 30. The stock has risen 18.1% since he traded. Gottheimer is a member of the House Special Committee on Intelligence and the Capital Markets Subcommittee.
Investment bosses bet on Chinese assets
Recently, well-known hedge fund manager David Tepper (David Tepper)'s Appaloosa Management Company announced the latest 13F position documents. The document highlights major initiatives in technology and the Chinese market, with David Tepper's portfolio welcoming 6 new stocks this quarter:
$Adobe (ADBE.US)$It became the company that added the most shares with 350,000 shares, worth about US$176.61 million, accounting for 2.61% of the investment portfolio.
$iShares China Large-Cap ETF (FXI.US)$This was followed by Tepper's purchase of 6.375 million shares, accounting for 2.27% of the portfolio, totaling approximately $153.45 million.
JD is also a notable addition, holding 3.649,800 shares worth about $99.97 million, accounting for 1.48% of the portfolio.
Tepper's strategy includes strengthening positions in 6 stocks, with a focus on Chinese stocks:
Alibaba's holdings were drastically increased by 6.9 million shares, bringing the total number of shares to 11.25 million shares. This adjustment marks a 158.62% increase in the number of shares, and the impact on the current portfolio is 7.39%, with a total value of US$814.05 million.
$PDD Holdings (PDD.US)$It was also greatly increased, increasing its holdings by 1,325 million shares, bringing the total number of shares to 2.1 million. This represents a 170.97% increase in the number of shares worth $244.13 billion.
At the same time, Tepper reduced its holdings of 13 stocks, mainly by drastically reducing its holdings of technology company stocks:$Uber Technologies (UBER.US)$The reduction in holdings of 4.64 million shares was reduced by 77.33%, and the impact on the portfolio reached 4.93%. The stock traded at an average price of $71.78 this quarter.
vs$Meta Platforms (META.US)$Holds were reduced by 727,500 shares, and holdings were reduced by 39.32%, and the impact on the portfolio reached 4.45%. The stock traded at an average price of $446.07 for the quarter.
As of the end of the first quarter of 2024, David Tepper's portfolio included 39 stocks. The largest holdings are mainly concentrated in the technology and Chinese market sectors, with Alibaba accounting for 12.05% of the investment portfolio, followed by$Amazon (AMZN.US)$, accounting for 10.22%,$Microsoft (MSFT.US)$It was 8.72%. Other significant holdings include Meta and$NVIDIA (NVDA.US)$.
According to data, David Tepper is a wealthy American businessman, hedge fund manager, and philanthropist. In the 2019 US 400 Richest List, he ranked 39th with assets of 12 billion US dollars. He is also the owner of the NFL Carolina Panthers. Once the head of Goldman Sachs Junk Bond Services, Tepper founded Appaloosa Asset Management, a global hedge fund headquartered in Miami Beach, Florida in 1993 and served as president after resigning as a partner.
The unexpected act of the big bears
Michael Berry's quarterly positions have also been revealed. The investor, known as the “big short,” revealed in Wednesday's quarterly portfolio update that he had reduced his portfolio positions from 25 to 16 in the 3 months ending March. The total value of his assets increased from around $95 million to around $103 million.
During this period, 11 companies' shares were retained, and the owner of Scion Asset Management increased all of them. For example, he increased Alibaba's holdings from 75,000 shares to 125,000 shares, JD's bet from 200,000 shares to 360,000 shares, and Star Bulk Carrier's bet from 250,000 shares to 400,000 shares.
Bury also added 5 new holdings to his collection:$Baidu (BIDU.US)$,$BP PLC (BP.US)$,$First Solar (FSLR.US)$,$Sprott Physical Gold Trust (PHYS.US)$und$The Cigna Group (CI.US)$. He also sold a range of shares, including$Amazon (AMZN.US)$,$Alphabet-C (GOOG.US)$,$MGM Resorts International (MGM.US)$,$Toast (TOST.US)$und$Warner Bros Discovery (WBD.US)$.
Michael Burry is known for his serious warnings and grim predictions of market crashes and economic disasters. On the eve of the 2008 financial crisis, he made a huge bet on the housing bubble, which was widely spread in the book and movie “The Big Short.” He then sounded the alarm for the “biggest speculative bubble ever” in the summer of 2021 and warned that buyers of meme stocks and cryptocurrencies would fall into crisis of collapse.
What's interesting is that Citron Research (Citron Research), a famous short agency that once discouraged China Securities, has also recently publicly sung a lot about Alibaba on social media. The agency said that Alibaba is gaining momentum, and investors will recognize its artificial intelligence (AI) cloud prospects and strategic investments. Citron believes Alibaba's stock price is expected to rise more than $100. In the field of big language models (LLM) in China, Alibaba's model is a leader. As of yesterday's close, Alibaba's US stock surged more than 7% to close at $86.7.
US lawmakers are all tempted
The bullish atmosphere in Chinese stocks seems to have tempted all US lawmakers.
According to data disclosed by QUIVER QUITATIVE, a data website specializing in stock trading research for members of Congress on May 15, local time, US Representative Josh Gottheimer bought a Chinese company on April 30$Tencent (TCEHY.US)$Shares. Since his trade, the stock has risen 18.1%.
According to the data, Josh Gottheimer has traded Tencent shares many times over the past few years.
Josh Gottheimer was born on March 8, 1975, 49 years old, from Livingston, New Jersey, USA. He studied at Harvard Law School (2004), University of Pennsylvania (1997), West Essex High School (1993), and Pembroke College, Oxford University. Since 2017, he has been a member of the Democratic House of Representatives.
According to reports, Josh Gottheimer is one of the best congressional traders, second only to Nancy Pelosi. The US “New York Times” revealed in 2022 that from 2019 to 2021, nearly 100 members of the US Congress were suspected of using their positions to trade financial assets such as stocks and bonds by obtaining insider information to profit from the financial market. At the time, Josh Gottheimer (Josh Gottheimer) was named. While serving as a member of the House Financial Services Committee, he and his spouse traded shares in various investment banks, including J.P. Morgan Chase and Wells Fargo.
Editor/Somer