To The Moon

Recently, major institutions have disclosed their 13F reports. This article briefly combs through the positions of major institutions, and especially focuses on Chinese stocks in their positions so as to find potential investment clues. 1.HHLR Advisors, Ltd. Assets under management: $4.67 billion Its top 10 positions are $BEIGENE(06160)$ , $JD.com(JD)$ , $Salesforce.com(CRM)$ , $DoorDash, Inc.(DASH)$ , $Sea Ltd(SE)$ , $Vipshop(VIPS)$ , $Legend Biotech(LEGN)$ , $Alibaba(09988)$ , $KE Holdings Inc.(BEKE)$ and $Daqo New(DQ)$ . Among the stocks added, HHLR Advisors is quite favorable to e-commerce stocks. It bought a lot shares in $JD.com(JD)$ , $Sea Ltd(SE)$ , $Vipshop(VIPS)$ and $Alibaba(BABA)$ . $Daqo New(DQ)$ is also worthy of attention. The company has one of the lowest polysilicon production cost in the world, and also belongs to PV concept. In China, the new energy concept is the hottest sector nowadays, and the trend of $Daqo New(DQ)$ in the U.S. stock is also significantly stronger than other Chinese stocks. Thus, HHLR Advisors successfully caught China's trend. 2. Greenwoods Asset Management Assets under management: $2.2 billion. Its top 10 holdings are: $KE Holdings Inc.(BEKE)$ , $JD.com(JD)$ , $NetEase(NTES)$ , $CSI China Internet ETF(KWEB)$ , $ZTO Express Inc.(ZTO)$ , $Alibaba(09988)$ , sea (East Ocean Group), $Pinduoduo Inc.(PDD)$ , $Full Truck Alliance Co. Ltd.(YMM)$ and $Kanzhun Limited(BZ)$ . In the 2Q, Greenwoods Asset increased holdings in Alibaba, SE, PDD and $Full Truck Alliance Co. Ltd.(YMM)$ . Similar with HHLR Advisors, it also focus on e-commerce stocks, especially Alibaba. Intriguingly, Greenwoods cut large positions in $JD.com(JD)$ , which is also an e-commerce stock. 3. Other Institutions Goldman Sachs Assets under management: $443.4 billion. Its top 10 holdings are mainly US stocks such as Apple, Microsoft, Amazon and Google. The largest holding among Chinese stocks is $Alibaba(09988)$ , with a market value of $2.88 billion, an increase of 11.57% in the number of shares compared to the previous quarter. Canada Pension Fund Investment Corporation ("CPPIB") Assets under management: $60.2 billion. Its top 5 positions are Google, $Informatica Inc.(NYSE)$ , $UnitedHealth(UNH)$ , natural gas company $Civitas Resources(CIVI)$ and $MasterCard(MA)$. Among the Chinese stocks, CPPIB mainly increased its holdings in $Pinduoduo Inc.(PDD)$ , the market value of its holdings reached 350 million, an increase of 25%. These 4 top institutions all added e-commerce stocks, especially $Alibaba(09988)$ . Why Institutions All Increase Positions in $Alibaba(BABA)$ in 2Q? Fundamentally, Alibaba reached the bottom. On May 26, Alibaba released its fiscal year 2022 quarterly report, which exceeded market expectations and eased market concerns about fundamentals, ushering in a strong rally in the stock price. The impact of the Shanghai outbreak in the second quarter had already been factored into the stock price. On August 4, Alibaba released new earnings, which again beat expectations. Among them, China commercial revenue declined only 1% year-over-year, cloud business grew 10% and total revenue was flat compared to the same period last year. Under the background of serious pandemic, Alibaba can still deliver a great earnings, meaning it have bottomed out fundamentally. Institutions probably consider Alibaba has bottomed out in the 2Q. So they collectively bought more Chinese stocks, especially the HHLR Advisors almost added all the top ten holdings. Have Chinese stocks really bottomed out? Share your views in the comments section~