HHLR Advisors, a fund management platform under Hillhouse Capital, released its third quarter 13F report, highlighting a strategic shift towards Chinese stocks. By the end of the quarter, nine of the top ten holdings in HHLR's portfolio were Chinese companies, including BeiGene (BGNE), Alibaba (BABA, Financial), Pinduoduo (PDD), Legend Biotech, Vipshop, NetEase, KE Holdings, Trip.com, and Futu Holdings.
During the quarter, HHLR Advisors significantly restructured its portfolio, reducing the number of holdings from 78 to 48. The fund divested and trimmed several U.S. tech stocks while overall portfolio value grew from $4.054 billion to $4.555 billion, a rise of over 10%, primarily due to impressive stock performance.
Key contributors to this growth were BeiGene (BGNE) and Alibaba (BABA, Financial), which saw their stock prices surge by 57.36% and 47.39%, respectively. HHLR Advisors increased its stakes in seven Chinese companies, including Alibaba, JD.com, Vipshop, NetEase, Trip.com, ZTO Express, and Futu Holdings.
Futu Holdings (FUTU) experienced a 45.8% increase, while Trip.com, ZTO Express, and Vipshop each soared by over 20%. This strategic pivot underscores HHLR Advisors' focus on Chinese stocks, with the Chinese segment comprising 93% of their holdings by the end of the third quarter, compared to 85% in the previous quarter.
In e-commerce, HHLR significantly increased its holdings in Alibaba while reducing its position in Pinduoduo (PDD), which first entered their top ten holdings in Q3 2022 with a 118% average price increase up to the third quarter of this year. This reduction might be a move to lock in profits and mitigate risk.
Similarly, Greenwoods Asset Management also increased its focus on Chinese stocks, notably ZTO Express, while reducing its stake in major U.S. companies like Microsoft, TSMC, and NVIDIA. Despite this, Greenwoods reported a decline in total portfolio value from $3.795 billion to $3.151 billion, marking a 16.97% decrease, primarily due to strategic divestments.
Global asset management giant BlackRock increased its holdings in major tech firms including Apple, Microsoft, NVIDIA, Amazon, Meta, Tesla, and Alphabet, while Berkshire Hathaway, led by Warren Buffett (Trades, Portfolio), reduced its Apple shares by 100 million, lowering its holding ratio to 26.24% due to potential tax considerations.
As of the third quarter's end, Berkshire Hathaway's U.S. stock holdings totaled $266.379 billion, down approximately $13.6 billion from the previous quarter, marking a third consecutive quarterly decline.
