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Alibaba Group Holding Ltd (BABA) Can’t Stop Fang Zheng’s Keywise Capital From Dominating the S&P 500

Alibaba Group Holding Ltd (NYSE:BABA) was the 3rd largest holding for Zheng’s Keywise and arguably the most frustrating. Zheng increased the position in the last quarter of 2014 to 100,533 shares for a value of $10.5 million representing a 10.86% stake of his 13F portfolio. Although Chinese stocks have been on a tear, bullish sentiment waned in Alibaba Group Holding Ltd (NYSE:BABA) as investors felt nervous about the expiring lockup period. Further, questionable acquisitions (ChinaVision) and accounting irregularities continue to pressure the stock downward. Dan Loeb’s Third Point is the largest investor among the funds we track with an investment value of about $1 billion as of the latest filing. Rob Citrone’s Discovery Capital Management is second with $960 million allocated. Shares of Alibaba Group Holding Ltd (NYSE:BABA) declined 20% in the first quarter of 2015.

Noah Holdings Limited (ADR) (NYSE:NOAH) is a $1.7 billion wealth management service provider operating in China. The company focuses on the high-net-worth population and provides asset management services as well as managing its own fund of funds and real estate fund products. Mr. Zheng started a new position in Noah Holdings Limited (ADR) (NYSE:NOAH) for Keywise Capital in the fourth quarter of 2014. Zheng was again rather aggressive with his new pick by immediately making it the fourth largest position in Keywise’s portfolio. At the beginning of 2015, Keywise Capital held 437,283 shares of Noah Holdings Limited (ADR) (NYSE:NOAH) with a value of $9.1 million, representing 9.5% of its 13F portfolio. Keywise Capital’s position in Noah is one of the largest among the firms we track. Other firms with positions are Ken Griffin’s Citadel Investment Group, Matthew Hulsizer’s Peak6 Capital, and Chuck Royce’s Royce & Associates.

JD.Com Inc (ADR) (NASDAQ:JD) is a $47 billion market cap holding company that engages in online direct sales. The company offers through its website and mobile applications a selection of authentic products to Chinese consumers. Investors are bullish on the company as it aims to change the e-commerce landscape in China. Recently JD.Com Inc (ADR) (NASDAQ:JD) announced it would launch the JD Worldwide platform, which will aim to offer authentic goods that previously weren’t available to the Chinese consumer, and help international sellers with no presence in China to sell to Chinese buyers. At the beginning of the year, Keywise Capital held some 70,000 shares with a value of $1.6 million, accounting for a 1.68% position in the firm’s 13F portfolio. As JD’s stock began to point downward in the fourth quarter, Zheng reduced the position by almost 80% from the level of the previous quarter. That proves unwise, as JD.Com Inc (ADR) (NASDAQ:JD)’s stock rebounded with a big first quarter, rising by 27%. Stephen Mandel’s Lone Pine Capital is the largest shareholder among the funds in our database, followed by Philippe Laffront’s Coatue Management. Both firms opened new positions in during the fourth quarter of 2014.

Disclosure: None

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