Compared to Tepper's "buy everything," hedge fund giants like Bridgewater, the big short, and Soros "precisely missed" the surge of Chinese concept stocks

With the explosive rise of Deepseek, it has added a "boost" to the Chinese stock market, and the market is beginning to consider "perhaps the entire Chinese assets need to be revalued." Some funds with "foresight" have made a fortune, while others have "precisely missed" the opportunity.

Hedge fund moguls who vowed to buy "everything" related to Chinese assets have already taken action. The 13F disclosure document of billionaire investor David Tepper's Appaloosa LP shows that the hedge fund significantly increased its holdings in Chinese concept stocks and Chinese stock funds in the fourth quarter of last year. Among them, Alibaba remains Appaloosa's largest holding, accounting for 16% of its net assets. Tepper believes that stocks in the Chinese market are much cheaper than those in the U.S. market.

However, well-known hedge fund giants like Bridgewater, major short sellers, and Soros have "precisely missed" this wave of growth.

Tepper's "Buy Everything" vs. Bridgewater's Cautious "Bets"

According to a previous article from Wall Street Insight, the famous Chinese stock bull Tepper increased his holdings in JD.com by 3.17 million shares, Alibaba by 1.84 million shares, Beike by 400,000 shares, Baidu by 100,000 shares, Pinduoduo by 55,000 shares, Kraneshares CSI China Internet ETF by 810,000 shares, and iShares China Large-Cap ETF by 800,000 shares in the fourth quarter of last year. He stated in late September that "after the Federal Reserve cut interest rates, one of my big bets was to buy all stocks related to China."

In contrast, the world's largest hedge fund, Bridgewater, significantly reduced its holdings in U.S.-listed Chinese stocks during the same period. According to its 13F filing submitted on Thursday, Bridgewater cut most of its holdings in Chinese concept stocks in the fourth quarter, including:

• Halving its position in Alibaba

• Reducing its stake in Tencent Music by 14%

• Cutting its position in iQIYI by 25%

• Reducing its stakes in Pinduoduo, Trip.com, and Yum China

These actions led to a 23% decrease in the value of U.S.-listed Chinese stocks held by Bridgewater compared to the previous quarter, down to approximately $267 million.

However, Bridgewater did not "reduce everything." The fund significantly increased its holdings in Li Auto (up 131%) and Baidu (up 72%), both of which performed strongly in the New York market and brought substantial returns to Bridgewater. Bridgewater also slightly increased its stake in Nio by 29%, but the stock subsequently fell and did not yield returns.

Additionally, the document shows that among Bridgewater's global asset management scale of $172 billion, it holds a total of 691 publicly traded stocks worth $21.8 billion. The company holds $2.2 billion in shares of the "seven giants" in the U.S., but the total value of these companies has changed little compared to the third quarter of last year.

Burry, Soros: Missed Alibaba

In addition to Bridgewater, major short seller Michael Burry and Soros also made "reduction" moves, both selling Alibaba while simultaneously increasing their holdings in other Chinese concept stocks, adjusting their investment portfolios:

• Michael Burry's Scion Asset Management significantly reduced its holdings in Alibaba ADR (25%) and JD.com ADR (40%) at the end of last year; established a new position in Pinduoduo (75,000 ADRs); maintained its position in Baidu.

• George Soros's Soros Capital Management completely liquidated its positions in Alibaba and Microsoft; established new positions in NVIDIA and Chipotle Mexican Grill; significantly increased its holdings in Amazon and TSMC