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

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

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!