Hedge Funds’ Favorite Chinese Reverse Merger Stocks

Bloomberg published the list of Chinese reverse merger stocks. These stocks are performing terribly this year and recently SEC issued a warning about the Chinese reverse merger companies. “Given the potential risks, investors should be especially careful when considering investing in the stock of reverse merger companies,” said Lori J. Schock, Director of the SEC’s Office of Investor Education and Advocacy. “As with any investment, investors should thoroughly research the company – including ensuring there is accurate and up-to-date information – before making a decision to invest.”

PAULSON & CO

We compiled the list of Chinese reverse merger companies that are favored by hedge funds and prominent investors. Of course, it is possible that these hedge funds didn’t do their homework on these reverse merger stocks and blindly bought them to gain some China exposure. Recently billionaire hedge fund manager John Paulson lost between $600-$650 Million in a Chinese company. So, investors have to be careful.

Here are the top Chinese reverse merger companies with at least 4 hedge funds investing a total of $10 Million:

Stock Ticker No of Funds Value (x1000)
ChinaCast Education CAST 12 88163
Harbin Electric HRBN 10 49602
Cogo Group COGO 8 37804
Sinovac Biotech SVA 4 22387
Yuhe International YUII 5 21216
Zhongpin HOGS 9 16489
Wonder Auto Technology WATG 8 11500
Jinpan International JST 4 11250

ChinaCast Education tops our list with 12 hedge funds holding $88 Million in CAST. Quincy Lee’s Teton Capital, Jeffrey Tannenbaum’s Fir Tree, Chase Coleman’s Tiger Global, and John Burbank’s Passport Capital are among the CAST investors (See the complete list of hedge funds in CAST).

Harbin Electric (HRBN) is the second most popular Chinese reverse merger stock. Philip Hempleman’s Ardsley Partners made a large bet on HRBN. Matthew Halbower’s Pentwater Capital had a $26 Million long position in HRBN as well. However, Halbower also had a $33 Million put option.

On the other hand, there aren’t any hedge funds in any of the following Chinese reverse merger stocks:

Aoxing Pharmaceutical AXN
China Auto Logistics CALI
China Botanic Pharmaceutical CBP
China CGame CCGM
China Fire & Security Group CFSG
China HGS Real Estate HGSH
China Infrastructure Investment CIIC
China Nutrifruit Group CNGL
China Pharma Holdings CPHI
China Recycling Energy CREG
China Shengda Packaging Group CPGI
ChinaNet Online Holdings CNET
Cleantech Solutions International CLNT
Dehaier Medical Systems DHRM
Ever-Glory International Group EVK
Feihe International ADY
Guanwei Recycling GPRC
Jiangbo Pharmaceuticals JGBO
Jingwei International JNGW
NF Energy Saving NFEC
Shengkai Innovations VALV
Skystar Bio-Pharmaceutical SKBI
THT Heat Transfer Technology THTI
Tianli Agritech OINK
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!