Hillhouse Capital's HHLR increased its investment in Chinese assets in the first quarter, newly investing in Baidu and Li Auto, and heavily investing in PDD
HHLR Advisors, under Hillhouse Capital, initiated and increased holdings in nearly 20 Chinese concept stocks in the first quarter of 2023, including Baidu and Li Auto. The total market value of the holdings increased from USD 2.89 billion to USD 3.54 billion, an increase of nearly 23%. Among the top ten holdings, nine are Chinese concept stocks, primarily concentrated in the information technology and consumer sectors. HHLR also fully exited Dada Group and reduced its stake in Alibaba by 20%
Hillhouse Capital is optimistic about China, and its subsidiary HHLR Advisors has newly entered and increased holdings in nearly 20 Chinese concept stocks in the first quarter.
The 13F report on institutional investors' holdings for the first quarter, released on Thursday, shows that HHLR Advisors, an independent fund management platform under Hillhouse Capital focused on secondary market investments, has newly entered and increased holdings in nearly 20 Chinese concept stocks. This includes new purchases of 10 companies such as Baidu and Li Auto, as well as increased holdings in 8 companies including Futu Holdings, PDD, NetEase, JD.com, and Trip.com, while reducing holdings in Alibaba and BeiGene.
According to data disclosure, HHLR's total market value of holdings in the first quarter increased from USD 2.89 billion at the end of the previous quarter to USD 3.54 billion, an increase of nearly 23%. Overall data shows that the top ten holdings of the fund accounted for 88.46% in the first quarter of this year. It increased holdings in 8 stocks, reduced holdings in 10 stocks, newly entered 11 stocks, and completely sold out of 7 stocks.
In the top ten heavy positions of HHLR Advisors in the first quarter, Chinese concept stocks occupy nine seats. Its top ten heavy positions are PDD, Alibaba, Futu Holdings, BeiGene, NetEase, Beike, Legend Biotech, JD.com, Vipshop, and WNS HLDGS LTD.
Increasing Investment in Chinese Information Technology and Consumer Stocks
In the first quarter, HHLR Fund newly entered 11 stocks, including well-known Chinese companies such as Baidu, Li Auto, and Weibo.
According to analyst statistics, among the 8 stocks it increased holdings in, the majority are in the information technology and consumer sectors. Among them, the increase in holdings for Futu Holdings, JD.com, and PDD exceeded 100% compared to the fourth quarter.
In the past month, most of the companies that HHLR bought and increased holdings in have seen significant price increases. As of May 15, the newly entered BOSS Zhipin has risen over 26%, and Li Auto has risen 21%. The increased holdings in Futu Holdings, PDD, and NetEase have also risen over 20%.
Liquidation of Dada Group, Reduction in Alibaba Holdings
HHLR Fund liquidated 7 stocks in the first quarter, including Momo and Dada Group, both of which are Chinese concept stocks.
HHLR Fund reduced its holdings in ten stocks, with the proportion of its holdings in Alibaba decreasing by 20%. However, according to the 13F filing, it still ranks as the second-largest holding.
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