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.

Hedge Funds Love Chinese Tech Stocks

Page 1 of 2

The Chinese economy is the second-largest economy in the world. The Chinese market for smartphones and internet applications is the largest in the world. There are 1.4 billion people in China and many of them have growing disposable incomes. Given the large size of the market, it’s not surprising that many elite hedge funds own shares of Chinese tech companies. In this article, we use the latest 13F filings to analyze how the elite hedge funds tracked by Insider Monkey are positioned in Alibaba Group Holding Ltd (NYSE:BABA), Baidu Inc (ADR) (NASDAQ:BIDU), Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), JD.Com Inc(ADR) (NASDAQ:JD), and Vipshop Holdings Ltd – ADR (NYSE:VIPS).

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).

Alibaba Group Holding Ltd (NYSE:BABA), sign on a building, logo, share, stock, New York, offering

Christopher Penler / Shutterstock.com

#5 Vipshop Holdings Ltd – ADR (NYSE:VIPS)

 – Number of Hedge Fund Holders (as of March 31): 42
– Total Value of Hedge Fund Holdings (as of March 31): $879.01 million
– Hedge Fund Holdings as Percent of Float (as of March 31): 11.70%

Vipshop Holdings Ltd – ADR (NYSE:VIPS) reported earnings of $0.16 per share on revenue of $1.89 billion in Yuan terms for the first quarter. Revenue grew by 41% year-over-year as China’s e-commerce market remains unsaturated. Management expects more of the same for the second quarter, with revenue growth guidance of 37%-to-42% year-over-year. Although Vipshop shares are down by 21% year-to-date, they now trade for just 14-times forward earnings estimates. Like the analysts who estimate higher earnings going forward, the smart money crowd is becoming more bullish. Of the 766 elite funds that we track, 42 owned shares of Vipshop at the end of the first quarter, up by eight from the end of 2015.

#4 Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP)

 – Number of Hedge Fund Holders (as of March 31): 67
– Total Value of Hedge Fund Holdings (as of March 31): $2.64 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 17.30%

As the dominant travel site in China, Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) is in prime position to benefit as the Chinese middle class continues to grow. Seeing as many analysts expect the disposable income of China’s middle class to rise considerably by 2020, Ctrip.com has substantially more revenue growth ahead of it. In addition, Ctrip has margin growth opportunities as the company gains more market share in the hotel booking sector and as management successfully integrates its Qunar acquisition. Billionaire Lei Zhang‘s Hillhouse Capital Management owned 8.16 million ADRs of Ctrip on March 31.

Follow Ctrip Com Intl Ltd (NASDAQ:CTRP)
Trade (NASDAQ:CTRP) Now!

We’ll reveal the top three Chinese tech stocks among hedge funds as of March 31 on the next page.

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...
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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!