In this article, we discuss the 5 Chinese stocks to buy according to Jonathan Guo’s Yiheng Capital. If you want to read our detailed analysis of Guo’s history and hedge fund performance, go directly to the 10 Chinese Stocks to Buy According to Jonathan Guo’s Yiheng Capital.
5. Tal Education Group (NYSE:TAL)
Guo’s Stake Value: $145.7 million
Percentage of Jonathan Guo’s 13F Portfolio: 5.86%
Number of Hedge Fund Holders: 39
Tal Education Group (NYSE:TAL) is a holding company that engages in the provision of after-school tutoring programs for primary and secondary school students. Its services are delivered through premium services, including one-on-one tutoring and online course offerings. Ranked fifth on the list of the 10 Chinese stocks to buy according to Jonathan Guo’s Yiheng Capital, Tal Education Group (NYSE:TAL) has a market capitalization of $3.21 billion.
As of the second quarter of 2021, Jonathan Guo’s Yiheng Capital holds over 5.77 million shares of Tal Education Group (NYSE:TAL), amounting to $145.7 million in worth and accounting for 5.86% of the fund’s portfolio. For the second quarter of 2021, the company reported earnings per share at $0.08, missing estimates of $0.11 by $0.03. In addition, the company also reported revenues at $1.10 billion, falling short of the estimated revenues by $21.40 million.
Out of the hedge funds being tracked by Insider Monkey’s database, New York-based investment firm Tiger Global Management LLC is a leading shareholder in Tal Education Group (NYSE:TAL) with 2.28 million shares worth more than $57.59 million.
In the Q2 2021 investor letter of Tao Value, the fund mentioned TAL Education Group (NYSE:TAL). Here is what the fund said:
“On detracting side, our largest loss came from our recent new education positions, TAL. New legislation on both private K9 education & private tutoring materialized in the past quarter, and they turned out to be irrationally harsher & broader than anticipated. When such worst scenario fold out, the prospects of the company undoubtably has changed significantly. Although I believe that market overreacted on this company, it appears that I have made a mistake underestimating the regulatory impact and picking it up too soon. Our position sizes reflected my evaluation of the risk, and I decide to stay put.”