Scotland-based investment management firm Baillie Gifford reshuffled its portfolio in the second quarter, with the noteworthy change being a drastic cut in its holding of Chinesed stocks, a 13F filing by the firm on Monday showed.
China Stocks Fall Out Of Favor: Baillie Gifford, founded in 1908, sold almost its entire holdings in Chinese e-commerce companies and trimmed positions in other Chinese stocks.
- Alibaba Group Holding Limited (NYSE:BABA) holding reduced from 1.75 million to 13 shares.
- JD.com, Inc. (NASDAQ:JD) stake drastically cut from 68,377 shares to one share.
- Baidu, Inc. (NASDAQ:BIDU) stake taken down from 3.75 million ADRs to 3.08 million ADRs.
- Tencent Music Entertainment Group (NYSE:TME) shares reduced from 50.09 million to 31.09 million.
- NetEase, Inc. (NASDAQ:NTES) stake cut in half from 263,352 shares to 103,340 shares.
- The worsening Sino-U.S. ties, potential U.S. delisting risk, and the domestic regulatory backlash all have led to a massive sell-off in the shares. This has rendered both institutional and retail investors cautious toward these stocks.
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Nio Stands As Exception: The investment firm bought shares of Chinese electric vehicle startup Nio, Inc. (NYSE:NIO) in the second quarter. At the end of the quarter, its Nio holding stood at about 96.73 million, up from 88.75 million shares at the end of the first quarter.
Baillie Gifford's Tesla, Inc. (NASDAQ:TSLA) stake fell from 10.57 million shares at the end of the first quarter to 6.3 million shares at the end of the second quarter. The firm's Rivian Automotive, Inc. (NASDAQ:RIVN) holding dipped modestly to 3.4 million.
Roblox Holding Nearly Doubles: Baillie Gifford held 14.8 million shares of Roblox Corporation (NYSE:RBLX) at the end of the second quarter. This is significantly higher than the 7.84 million shares at the end of the first quarter.
Roblox is an online gaming and entertainment platform that benefited from COVID-19 but has seen softness since then. The platform leverages on the metaverse, which is considered the next big thing in tech. It earns money from its virtual currency, ads, licenses, and royalty.