Recently, the third-quarter U.S. stock holdings of several top private equity funds, including Gao Yi Asset, Hillhouse Capital Group, Jinglin Asset, and TOP ACE ASSET MANAGEMENT under Wang Yawei, have been disclosed.
According to information obtained from the private equity ranking website Ppwar.com by a Securities Times reporter, among the current holdings of top private equity funds, technology and consumer stocks are the focus, with some leading technology companies experiencing significant increases in holdings.
Yao Xusheng, Managing Partner of Ppwar.com Wealth Management, stated that top private equity funds favor the technology sector for several reasons: firstly, leading technology companies have a high market share, and once they achieve technological breakthroughs, they can rapidly increase their market share; secondly, technological development leads to the emergence of many emerging industries, and leading companies’ resource integration capabilities give them an advantage in seizing investment opportunities; thirdly, leading technology stocks are more likely to receive support in terms of policies.
Hillhouse Capital Increases Stake in Amazon, etc.
HHLR Advisors, the fund under Hillhouse, revealed its U.S. stock holdings data, showing a continued focus on technology. The fund increased its holdings in Amazon, Roivant, Microsoft, and Boss Zhipin, while also acquiring seven stocks, including Tesla. It reduced positions in several stocks such as JD.com, Futu Holdings, and completely exited its Ideal Auto holdings.
As of the end of the third quarter of 2023, HHLR Advisors held 67 stocks in the U.S. market, a decrease of 14 stocks compared to the previous quarter, with a total market value of $4.479 billion, down 4.6% compared to the previous quarter’s $4.696 billion.
In the third quarter of 2023, HHLR Advisors increased its holdings in Amazon, Roivant, Microsoft, and Boss Zhipin. Among them, Amazon, the tenth largest holding, had the highest increase in proportion. In the third quarter, Hillhouse increased its holdings of Amazon by 777,700 shares, a growth of 3,200% compared to the previous quarter. The market value at the end of the third quarter was nearly $102 million, representing a share of 2.28% in the investment portfolio.
Jinglin Asset Increases Stake in Microsoft, etc.
Jinglin Asset’s third-quarter U.S. stock holdings data showed that the top ten holdings at the end of the third quarter were Pinduoduo, Meta, Microsoft, NetEase, ZTO Express, SharkNinja, New Oriental, Google, Doordash, and Futu Holdings, accounting for a total holding proportion of 86.87%.
Pinduoduo remained the largest holding, and Jinglin Asset continued to increase its position in the third quarter, from 4.7 million shares to 5.1586 million shares, corresponding to a market value of $506 million. Jinglin Asset has been consistently increasing its position in Pinduoduo since the second quarter of 2022.
Notably, Jinglin Asset significantly increased its holdings in Microsoft during the third quarter, raising its position from 869,300 shares at the end of the second quarter to 1,180,600 shares at the end of the third quarter. The market value of the holding reached $373 million, elevating the stock’s ranking from eighth place in the second quarter to third place in the third quarter.
Home appliance brand SharkNinja and Google are newly added holdings. SharkNinja is a global product design and technology company that manufactures a variety of small household appliances. After clearing out Google in the second quarter of this year, Jinglin Asset repurchased 887,900 shares in the third quarter, with a holding market value of $116 million.
Gao Yi Asset Increases Stake in iQiyi, etc.
Gao Yi Asset’s international investment institution 13F filing showed that its total market value of U.S. stocks held in the third quarter reached $386 million. The fund bought 5 new U.S. stocks, increased positions in 4 U.S. stocks, and reduced positions in 3 U.S. stocks.
Specifically, Gao Yi Asset’s international holdings in the third quarter included new positions in Huazhu Group, Alibaba, TSMC, Ctrip, and Zhihu; the largest increase was in iQiyi, with nearly 7.0292 million shares added during the reporting period, representing a staggering 878.65% increase in shareholding. The end-of-quarter holding market value reached $37.11 million, making it the third-largest holding. During the same period, NetEase, MistChip Technologies, and Yado also saw increased positions by Gao Yi Asset.
On the reduction side, Gao Yi Asset’s international unit sold 574,400 shares of Pinduoduo in the third quarter. However, Pinduoduo still maintained its position as the top holding in Gao Yi Asset’s international U.S. stock portfolio. TAL Education and New Oriental also faced reductions by Gao Yi Asset’s international unit.
Wang Yawei Increases Stake in Baidu, etc.
Top Ace, under Wang Yawei, held 10 stocks at the end of the third quarter, with a total market value of $25.3395 million, including Baidu, NVIDIA, Yum China, JD.com, and Pinduoduo. Among them, Baidu experienced a relatively large increase in Wang Yawei’s holdings during the third quarter, reaching 101.51%. The end-of-quarter holdings amounted to 80,000 shares, with a market value of $10.748 million.
Overall, top private equity funds continue to show high interest in AI technology stocks, whether it be Microsoft, Baidu, or Google, all of which have seen significant increases in holdings. Guolian Securities believes that the commercial exploration of OpenAI, expanding from AI products like ChatGPT with paid subscriptions and API access to the ecosystem model of application stores, is expected to accelerate the application landing of AI large models in vertical domains.