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.
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JD.Com Inc(ADR) (NASDAQ:JD)
– 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.
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.