In the first quarter, hedge fund boss David Tepper sharply increased his holdings of Ali, Pinduoduo, and Baidu. China Securities and China ETF positions reached 24%.
Hedge fund bosses took the lead in pouring into Chinese securities.
Regulatory documents show that in the first quarter of this year, Appaloosa Management (Appaloosa Asset Management), a hedge fund owned by the well-known American billionaire investor and hedge fund legend David Tepper (David Tepper), doubled its holdings in Alibaba, and Ali became the largest stock in its 6.7 billion US dollar stock portfolio.
The fund also increased its holdings in Pinduoduo and Baidu, opened positions in JD.com, FXI, and KWEB, and reduced its holdings in JD Mall, NIO, and Ideal.
Unlike Wall Street's strategy, which generally focuses on technology stocks, Appaloosa drastically reduced its holdings of Nvidia and Meta in the first quarter, by up to 45% and 40%, respectively. Microsoft and Amazon also opened positions at 18% and 4%, respectively.
According to statistics, as of the first quarter, China Securities and Chinese ETFs accounted for 24% of Appaloosa's stock portfolio.
Coincidentally, Scion Asset Management, a hedge fund owned by legendary investor Michael Burry (Michael Burry), the prototype of “The Big Short”, also increased its holdings of JD and Ali in the first quarter, as well as Baidu ADRs (American Depositary Receipts) by 4.2 million dollars.
According to regulatory information, JD is currently the largest holding in the fund's investment portfolio, and Ali is the second-largest stock.
Foreign giants “burst into buying” in the Chinese stock market
Since the beginning of this year, the Chinese stock market has rebounded strongly, boosted by “national team” support and favorable policies. The MSCI China Index has soared nearly 30% since its January low.
Furthermore, Internet technology companies' profits are improving, and overall market valuations are low, further amplifying the appeal of Chinese stocks.
Compared to Burry, Tepper's return seemed more aggressive.
According to the data, by the end of the first quarter, Appaloosa's total investment in Ali had exceeded 800 million US dollars, and its shareholding had increased sharply from 4.35 million shares to about 11.25 million shares, with positions as high as 12%, making Tepper one of Ali's largest shareholders.
At the same time, Appaloosa is also one of the largest institutional investors in the iShares FTSE China 50 Index (FXI) and KraneShares Central Internet Index (KWEB) funds.
It is worth noting that Citron Research (Citron Research), an agency famous for doing aerial stock exchanges in the past, also posted a social media post during the morning trading session of the US stock market on Thursday.
Citron said that Alibaba is gaining momentum, and the stock price is expected to rise above $100. Investors will recognize Ali's AI cloud prospects and strategic investments.