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

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

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

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!