5 China Stocks in Ray Dalio’s Portfolio

3. KE Holdings Inc. (NYSE:BEKE)

Number of Hedge Fund Holders: 37

KE Holdings Inc. (NYSE:BEKE) is a Beijing-based company that runs an integrated online and offline platform for real estate transactions and services in the People’s Republic of China. The company operates through three segments – Existing Home Transaction Services, New Home Transaction Services, and Emerging and Other Services. Ray Dalio’s portfolio had over 3 million shares of KE Holdings Inc. (NYSE:BEKE) in Q2 2022, worth $55.4 million. 

On August 25, Barclays analyst Jiong Shao raised the price target on KE Holdings Inc. (NYSE:BEKE) to $26 from $24 and reaffirmed an Overweight rating on the shares. The company’s “much stronger than expected” Q2 results showed a 30% revenue beat and demonstrate that Chinese consumers are “coming out in droves to scoop up homes,” the analyst told investors.

According to Insider Monkey’s data, 37 hedge funds were bullish on KE Holdings Inc. (NYSE:BEKE) at the end of June 2022, up from 34 funds in the last quarter. Thomas Steyer’s Farallon Capital is a notable position holder in the company, with approximately 10 million shares worth $178.75 million. 

Here is what Tao Value has to say about KE Holdings Inc. (NYSE:BEKE) in its Q3 2021 investor letter:

“As witnessed in the past quarter, the government intervention in the Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We exited KE holdings (ticker: BEKE), for high potential regulatory risk and the passing of the visionary founder & CEO Zuo Hui (who was a core tenet of our original thesis).”