Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Harvard Management Is Bullish on China, Mexico: From Alibaba Group Holding Ltd (BABA) To America Movil SAB de CV (ADR) (AMX)

Page 1 of 2

Harvard Management Company is, as one might deduce from its name, a fully owned subsidiary of Harvard University. Ironically, the fund is run by a Yale grad, Jane Mendillo. The firm manages not only more than half a billion dollars in U.S. traded equities, but also Harvard University’s endowment, the largest academic endowment in the world, valued at more than $37.6 billion.

According to its latest 13F filing, the fund owned $514.2 million in equities as of June 30, and was mostly focused on financial stocks, which represented 52% of the portfolio’s total value. Also substantial was its exposure to information technology stocks, which accounted for roughly 23% of the portfolio. In this article, in particular, we will look into some bullish positions the fund held in Mexican and Chinese companies – as of the end of the second quarter of the year.

Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details here).

Jane Mendillo


– Shares held by Harvard Management as of June 30: 336,871

– Value of Harvard Management’s stake as of June 30: $7.15 million

Although the number of hedge funds in our database long JD.Com Inc(ADR) (NASDAQ:JD) tumbled by more than 30% over the second quarter of 2016, as the stock lost more than 22% of its value. However, Harvard Management remained bullish, boosting its exposure by 15% over the period. Another fund that remained optimistic on the company was Andreas Halvorsen’s Viking Global, which disclosed ownership of 22.49 million shares as of June 30. Since the end of the second quarter, shares of JD.Com Inc(ADR) (NASDAQ:JD) have gained around 23% during the third quarter, largely driven by strong second-quarter results. Net revenue rose by 42% year-over-year, to approximately $9.8 billion, with revenue from services and other businesses up by 67% to $832.25 million. Gross profit also rose by 66% to $1.4 billion, while annual active customer accounts spiked by 65% to 188.1 million.

Follow Inc (NASDAQ:JD)
Trade (NASDAQ:JD) Now!

Fomento Economico Mexicano SAB (ADR) (NYSE:FMX)

– Shares held by Harvard Management as of June 30: 105,742

– Value of Harvard Management’s stake as of June 30: $9.78 million

Next up is Harvard Management’s stake in Fomento Economico Mexicano SAB (ADR) (NYSE:FMX), which remained unchanged over the second quarter, accounting for almost 2% of the portfolio’s total value. Even more bullish seemed Jim Simons’s Renaissance Technologies, which more than doubled its exposure to the stock between April and June, taking it to 479,000 shares.Shares of Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) lost 4.25% in the second quarter, and inched down by 0.5% in the third quarter. However, the company last reported second-quarter EPS of roughly $0.74 per ADS, well above consensus of $0.66, while revenue also rose by 25.9% to approximately $5.22 billion, again beating estimates of $4.88 billion.

Follow Fomento Economico Mexicano S (NYSE:FMX)
Trade (NYSE:FMX) Now!

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!