5 Stocks to Sell Now According to Julian Robertson’s Hedge Fund

4. JD.Com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 59

Tiger Management owned more than 26,000 shares of JD.Com, Inc. (NASDAQ:JD) in Q4 2021. The fund’s stakes in the company were valued at roughly $1.83 million. Julian Robertson’s fund exited JD.Com, Inc. (NASDAQ:JD) in the first quarter of 2022.

On May 18, Benchmark analyst Fawne Jiang lowered his price target on JD.Com, Inc. (NASDAQ:JD) to $106 from $117 but maintained a Buy rating on the shares. The analyst noted that the company reported strong Q1 results, but guided to a relatively weaker Q2 growth. However, Jiang contended that JD.Com, Inc.’s (NASDAQ:JD) business fundamentals remain robust even during short-term headwinds due to Covid.

At the close of Q1 2022, 59 hedge funds were long JD.Com, Inc. (NASDAQ:JD) with stakes worth $ 5.40 billion. This is compared to 67 positions in Q4 2021 with stakes of $8.75 billion.

Here is what Argosy Investors had to say about JD.Com, Inc. (NASDAQ:JD) in its third-quarter 2021 investor letter:

“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”