What have hedge funds been doing with JD.Com Inc (ADR) (NASDAQ:JD)?
At the end of the fourth quarter, a total of 78 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 10% rise from the end of the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings significantly (or had already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Hillhouse Capital Management, managed by Lei Zhang, holds the most valuable position in JD.Com Inc (ADR) (NASDAQ:JD). Hillhouse Capital Management has a $3.96 billion position in the stock, comprising 69.2% of its 13F portfolio. Sitting at the No. 2 spot is the aforementioned Tiger Global Management, holding a $1.92 billion position; the fund has 15.5% of its 13F portfolio invested in the stock. Some other professional money managers that are bullish contain Stephen Mandel’s Lone Pine Capital, William B. Gray’s Orbis Investment Management, and Philippe Laffont’s Coatue Management.
Consequently, some big names were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the largest position in JD.Com Inc (ADR) (NASDAQ:JD). Arrowstreet Capital had $138 million invested in the company at the end of the quarter. Eric W. Mandelblatt’s Soroban Capital Partners also made a $137.5 million investment in the stock during the quarter. The other funds with new positions in the stock are David Gallo’s Valinor Management LLC, Wang Chen’s Serenity Capital, and Yi Xin’s Ariose Capital.
Let’s go over hedge fund activity in other stocks similar to JD.Com Inc (ADR) (NASDAQ:JD). These stocks are IntercontinentalExchange Inc (NYSE:ICE), Illumina, Inc. (NASDAQ:ILMN), Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), and Air Products & Chemicals, Inc. (NYSE:APD). All of these stocks’ market caps are similar to JD’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ICE | 50 | 2395027 | 12 |
| ILMN | 40 | 1318987 | -22 |
| PBR | 24 | 165893 | 0 |
| APD | 55 | 6752027 | -22 |
As you can see these stocks had an average of 42 hedge funds with bullish positions and the average amount invested in these stocks was $2.66 billion. That figure was $10.84 billion in JD’s case. Air Products & Chemicals, Inc. (NYSE:APD) is the most popular stock in this table. On the other hand Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is the least popular one with only 24 bullish hedge fund positions. Compared to these stocks JD.Com Inc (ADR) (NASDAQ:JD) is more popular among hedge funds. Considering that hedge funds are very fond of this stock in relation to its market cap peers and particularly in light of it being an (ADR) stock, which they tend to not invest heavily in, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None
