In this article, we will take a look at the 5 tech stocks Chinese billionaire Chen Tianqiao loves. You can see our detailed analysis of Tianqiao’s history, investment philosophy, and hedge fund performance at 10 Tech Stocks Chinese Billionaire Chen Tianqiao Loves.
5. Apple Inc. (NASDAQ:AAPL)
Tianqiao’s Stake Value: $34.2 million
Percentage of Chen Tianqiao’s 13F Portfolio: 2.79%
Number of Hedge Fund Holders: 138
Apple Inc. (NASDAQ: AAPL) is a multinational technology company that develops, manufactures, and sells smartphones, laptops, tablets, and smartwatches, among other electronics and accessories. Founded in 1976, the tech giant is ranked fifth on the list of the 10 tech stocks Chinese billionaire Chen Tianqiao loves.
The hedge fund managed by Chen Tianqiao owns 250,000 shares in Apple Inc. (NASDAQ: AAPL), worth over $34.2 million, representing 2.79% of his fund’s investment portfolio. By the end of the second quarter of 2021, 138 hedge funds out of the 873 tracked by Insider Monkey held stakes in Apple Inc. (NASDAQ:AAPL), worth roughly $145.5 billion, up from 127 hedge funds in the preceding quarter.
For the second quarter of 2021, Apple Inc. (NASDAQ:AAPL) reported earnings per share of $1.40, crossing estimates by $0.41. The company also reported revenues amounting to $89.58 billion, an increase of 53.63% on a year-over-year basis, surpassing market predictions by $12.3 billion.
On September 1, investment advisory Bank of America restated a Neutral rating on Apple Inc. (NASDAQ:AAPL) stock with a price target of $160.
ClearBridge Investments, in its Q1 2021 investor letter, mentioned Apple Inc. (NASDAQ: AAPL). Here is what the fund said:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
4. Visa Inc. (NYSE:V)
Tianqiao’s Stake Value: $38.5 million
Percentage of Chen Tianqiao’s 13F Portfolio: 3.14%
Number of Hedge Fund Holders: 162
Visa Inc. (NYSE:V) is a California-based multinational financial services company that enables electronic funds transfers throughout the world. Ranked fourth on our list of the 10 tech stocks Chinese billionaire Chen Tianqiao loves, Visa Inc. (NYSE:V) has a market capitalization of $473.75 billion.
Chen Tianqiao’s Shanda Asset Management currently owns 165,000 shares of Visa Inc. (NYSE:V), amounting to over $38.5 million in worth, accounting for 3.14% of the fund’s portfolio value. At the end of the second quarter of 2021, 162 hedge funds in the database of Insider Monkey held stakes worth $27.6 billion in Visa Inc. (NYSE:V), down from 164 in the previous quarter with stakes worth $26.5 billion.
The company issued its quarterly earnings report for the second quarter of 2021 in March, with earnings per share at $1.38, beating forecast estimates by $0.11. The company also reported a revenue of $5.73 billion, surpassing predicted revenues by $175.03 million.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
3. Alphabet Inc. (NASDAQ:GOOG)
Tianqiao’s Stake Value: $78.1 million
Percentage of Chen Tianqiao’s 13F Portfolio: 6.36%
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) is a multinational conglomerate that owns and operates several internet-based platforms. Ranked third on the list of the 10 tech stocks Chinese billionaire Chen Tianqiao loves, Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $1.78 trillion.
On July 27, Alphabet Inc. (NASDAQ:GOOG) issued its quarterly earnings report for the second quarter of 2021, with reported an EPS at $27.26, crossing estimates of $19.10 by $8.16. Additionally, the company also reported revenues of $61.88 billion, beating market predictions by $5.80 billion.
According to the recent 13F Filings, Shanda Asset Management holds 32,000 shares of Alphabet Inc. (NASDAQ:GOOG), amounting to $78.1 million in worth and accounting for 6.36% of the fund’s investment portfolio. As of the second quarter of 2021, 155 hedge funds tracked by Insider Monkey have positions in Alphabet Inc. (NASDAQ:GOOG), worth over $33.7 billion, compared to 159 in the first quarter, worth $29 billion.
On September 17, Jefferies analyst Brent Thill raised the firm’s price target on Alphabet Inc. (NASDAQ:GOOG) to $3,325 from $3,150 and kept a Buy rating on the shares.
In the Q2 2021 investor letter of Mawer Investment Management, the fund mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“Many higher growth companies reported strong results amid the pick-up in broad economic activity including Alphabet. These higher growth companies tend to have increased sensitivity to a change in discount rates and were supported as long-term interest rates stabilized over the period.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Tianqiao’ Stake Value: $84.1 million
Percentage of Chen Tianqiao’s 13F Portfolio: 6.85%
Number of Hedge Fund Holders: 64
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor manufacturing company. Ranked second on the list of the 10 tech stocks Chinese billionaire Chen Tianqiao loves, the company operates as the world’s largest semiconductor foundry, involved in the design and manufacture of integrated circuits, as well as semiconductors for various electronics.
On July 15, the company released its quarterly earnings report for the second quarter of 2021, with reported earnings per share at $0.93, beating estimates by $0.01. On the other hand, the company generated revenues amounting to $13.32 billion, falling short of the estimated revenues by $2.77 million.
At present, Chen Tianqiao holds 700,000 share of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), worth $84.1 million and representing 6.85% of his investment fund’s portfolio value. By the end of the second quarter of 2021, 64 hedge funds out of the 873 tracked by Insider Monkey held stakes in Taiwan Semiconductor Manufacturing Company (NYSE:TSM), worth roughly $10.4 billion, down from 76 hedge funds in the preceding quarter with stakes worth approximately $10.8 billion.
In the Q2 2021 investor letter of Wedgewood Partners, the fund mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Here is what they said:
“We initiated a new position in Taiwan Semiconductor Manufacturing, the largest contract manufacturer of logic semiconductors in the world. The Company has invested prodigious amounts of capital ($17 billion in 2020 alone and as much as $28 billion this year) over the past several years, at returns that suggest to us a very steep and sustainable competitive advantage. The Company has a very long runway to grow its business at a double-digit rate, driven by several favorable industry and company-specific trends including semiconductor architectural design changes, increasing manufacturing process complexity, and the proliferation of more logic semiconductors in more devices.
With over 50% market share, more than 3X that of its next largest competitor, Samsung, the Company dominates the contract foundry industry for logic semiconductors (source: Trendforce). Taiwan Semi has erected a formidable competitive barrier with its manufacturing capacity, as the Company carries over $150 billion in gross PPE (property, plant, and equipment) on its balance sheet. This would put the Company in the top echelons of invested tangible capital, globally. Further, the Company has committed to a multi-year, $100 billion capital investment program aimed at building out some of the only capacity capable of manufacturing leading-edge, sub 7 nanometers (nm) resolution integrated circuits. While semiconductor cycles are notoriously boom-bust, the Company has already secured enough demand to drive very high utilization rates for this new bleeding-edge capacity much earlier compared to previous capacity rollouts…” (Click here to see the full text)
1. Amazon.com, Inc. (NASDAQ:AMZN)
Tianqiao’s Stake Value: $212.2 million
Percentage of Chen Tianqiao’s 13F Portfolio: 17.3%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational company that specializes in e-commerce, cloud computing, digital streaming and artificial intelligence. The e-commerce giant has a market capitalization of $1.66 trillion, and is ranked first of the list of the 10 tech stocks Chinese billionaire Chen Tianqiao loves.
Amazon.com, Inc. (NASDAQ:AMZN) last released its earnings report on July 28, 2021, with reported earnings per share at $15.12, beating estimates of $12.22. The company also reported revenues of $113.08 billion, missing estimated revenues by $2.01 billion. Earnings for the e-commerce giant are expected to grow by 29.57% in the coming year.
Chen Tianqiao’s Shanda Asset Management currently holds 61,700 shares of Amazon.com, Inc. (NASDAQ:AMZN), amounting to over $212.2 million in worth and accounting for 17.3% of the fund’s portfolio. There were 271 hedge funds in our database that held stakes in Amazon.com, Inc. (NASDAQ:AMZN) worth $60.49 billion in the second quarter of 2021, compared to 243 funds in the first quarter with total stakes amounting to approximately $50.4 billion.
On September 30, RBC Capital analyst Brad Erickson initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) with an Outperform rating and $4,150 price target, noting that the stock is a favorite among the internet stocks involved with e-commerce.
In the Q2 2021 investor letter of L1 Capital, the fund mentioned Amazon.com, Inc. (NASDAQ:AMZN). Here is what the fund said:
“Amazon flipped from being the largest detractor from portfolio performance in the March 2021 quarter, to one of the leading contributors in the June 2021 quarter. We took advantage of negative near-term sentiment in the March 2021 quarter to add to our Amazon investment. We continue to view Amazon as one of the best positioned businesses globally, with its share price still not reflecting fair value.”
You can also take a peek at the 10 Penny Stocks Redditors are Buying in August and 10 Best Small-Cap Stocks to Buy According to Hedge Funds.
