Greenwoods Asset Management, a major private equity firm, has recently disclosed its latest U.S. stock holdings. Data reveals that during the fourth quarter of last year, Greenwoods substantially reduced its position in NVIDIA while increasing its stakes in companies such as Alphabet, PDD Holdings Inc, and Intel. As of the end of the fourth quarter, the total market value of Greenwoods' U.S. stock portfolio was $4.04 billion, marking a decrease of 3.37% from the end of the previous quarter. The top ten holdings by weight were: Alphabet, Meta Platforms, Inc., PDD Holdings Inc, NetEase, Full Truck Alliance, Futu Holdings Limited, NVIDIA, Alibaba, Intel, and Atour Lifestyle Holdings Limited.
Analyzing the changes in individual stock weights within the portfolio, the company that saw the most significant increase in holdings from Greenwoods in the fourth quarter was Alphabet. The number of shares held rose to 2.69 million, representing a 52.81% increase from the end of the prior quarter. Its weighting in the portfolio surged by 11.18% to 20.82%, making Alphabet the fund's largest holding. Greenwoods also established a new position in Broadcom, acquiring 245.8 thousand shares, which accounted for 2.1% of the portfolio, ranking as the second-largest addition. Furthermore, the fund made substantial increases to its positions in PDD Holdings Inc, Intel, and Futu Holdings Limited.
On the reduction side, the stock with the largest sell-off by Greenwoods was NVIDIA. In the fourth quarter, the fund sold a total of 1.5409 million shares, a reduction of 64.78%. Consequently, NVIDIA's weighting in the Greenwoods portfolio decreased to 3.86%. Greenwoods also sold 229.1 thousand shares of Meta Platforms, Inc., reducing the share count by 18.68% and decreasing its portfolio weighting by 4.01%. Simultaneously, the fund reduced its positions in Novobius Group, the SPDR S&P Biotech ETF, and KE Holdings Inc.
Towards the end of last year, Gao Yuncheng, a partner and fund manager at Greenwoods Asset Management, outlined in a year-end letter to investors that both the U.S. and China are actively investing in frontier areas of new economic development, such as AI, new energy, smart driving, and humanoid robots. He noted that related companies are experiencing rapid growth within this major trend. While cautioning about potential bubbles or overinvestment, he also clearly stated that the penetration and transformation of AI across various industries has only just begun.
Gao Yuncheng believes that companies serving as crucial AI application entry points or platforms warrant significant attention. He estimates that there are only a handful of companies that can be considered world-class entry points or platform-type entities, citing examples such as Alphabet, Meta Platforms, Inc., Apple, ByteDance, Tencent, and OpenAI. He suggested that 2026 could very well be the inaugural year for the widespread adoption of AI Agents.
In the letter, Gao Yuncheng also analyzed Greenwoods' portfolio, stating that the core holdings are fundamentally stable. He summarized the strategy in one phrase: "Two systems, each with its stars." Within the two primary systems, led by the U.S. and China, Greenwoods selects companies based on their respective comparative advantages, focusing on those with reassuring valuations and operating cash flows. He highlighted that the companies in the core portfolio share a common characteristic: strong customer stickiness and pricing power, distinct product differentiation, and the ability to control their desired profit margin levels according to their own operational rhythms.
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