In this article, we will look at Billionaire Lei Zhang’s 10 Stock Picks with Huge Upside Potential.
Lei Zhang and Hillhouse Capital: Quiet Power in Asian Investing
Lei Zhang, the founder and CEO of Hillhouse Capital, is one of the most influential yet low-profile figures in the world of investing. Born and raised in China, Zhang later studied in the US, earning an MBA from Yale, where he was influenced by David Swensen, the university’s legendary endowment manager. It was with Swensen’s support that Zhang launched Hillhouse in 2005, initially backed with capital from Yale’s endowment fund. Hillhouse Capital started small but quickly established itself as a powerhouse in Asia’s fast-evolving markets. The firm is known for its long-term, research-driven approach, often taking significant positions in high-growth companies and partnering with management teams to help scale operations. Rather than chasing short-term gains, Zhang’s strategy is focused on building durable, competitive businesses.
One of Hillhouse’s early and most notable investments was in Tencent, the Chinese tech giant. The firm got in when the company was still relatively unknown outside China, and the bet paid off tremendously. Other major holdings have included JD, Baidu, and Meituan, as well as a growing number of companies in sectors like healthcare, logistics, and consumer goods. Zhang’s investment style blends elements of private equity and public market investing. He’s not afraid to hold stakes for many years, and Hillhouse often works closely with portfolio companies to improve operations and governance. This hands-on, collaborative model has helped the firm build a strong reputation among entrepreneurs and institutional investors alike.
Hillhouse Capital has since expanded beyond China and now manages tens of billions of dollars across Asia and other markets, with offices in Singapore, Hong Kong, and New York. Despite its size, the firm remains relatively discreet. Zhang himself rarely gives interviews and avoids the spotlight, preferring to let the results speak for themselves. Hillhouse Investment has built a reputation for exceptional returns, achieving annualized gains as high as 52% from its founding through 2012. Its expansion has been fueled by a consistent ability to deliver strong results even as the firm has grown. Hillhouse has a broad sector focus that includes technology and enterprise software. The firm also frequently collaborates with other major investors, such as Sequoia Capital, through co-investment partnerships.
Under Zhang’s leadership, Hillhouse has become synonymous with disciplined growth investing in some of the world’s most dynamic economies. For many, Zhang represents a new breed of the global investor: one who bridges East and West, and who plays the long game in an increasingly complex financial landscape.
Lei Zhang of Hillhouse Capital Management
Our Methodology
For this list, we picked stocks from Hillhouse Capital’s 13F portfolio as of the end of the fourth quarter of 2024. We listed them in the ascending order of analysts’ average upside potential. These equities are also popular among other hedge funds.
Note: All data was recorded on May 7, 2025.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Billionaire Lei Zhang’s 10 Stock Picks with Huge Upside Potential
10. NetEase, Inc. (NASDAQ:NTES)
Hillhouse Capital’s stake: $230,959,605
Upside Potential: 13.11%
Number of Hedge Fund Holders: 38
NetEase, Inc. (NASDAQ:NTES) operates a successful online gaming business with a diverse portfolio of over 100 mobile and PC games across various genres. Its offerings include both in-house developed and licensed titles, with strong user engagement and global reach, particularly in China, Japan, Southeast Asia, and the US. Leveraging user insights, the company has expanded into innovative ventures like intelligent learning, music streaming, e-commerce, and digital services, reinforcing its leadership in digital entertainment and value-added services.
NetEase, Inc. (NASDAQ:NTES) reported strong FY 2024 results with total net revenue of RMB 105.3 billion, a slight increase of 1.3% year-over-year. The company saw record-high game revenue of RMB 83.6 billion, a 2.4% year-over-year increase. Titles like Marvel Rivals and Where Winds Meet saw massive success, boosting user engagement globally. Legacy games and new releases both performed well, while platforms like Youdao and NetEase Cloud Music also contributed through innovation and profitability. The company remains focused on diversification, global expansion, and high-quality content.
NetEase, Inc. (NASDAQ:NTES) plans to expand globally by adapting to regional player preferences and supporting creative overseas studios. The company is investing long-term in flagship games like Marvel Rivals, including esports and media tie-ins, while preparing an overseas release of Where Winds Meet in 2025. NetEase is also revitalizing legacy Blizzard titles with localized strategies. AI integration is central to improving game development efficiency and player engagement. The company’s strategic resource allocation ensures focus on high-quality, market-relevant projects amid ongoing organizational adjustments.
9. Trip.com Group Limited (NASDAQ:TCOM)
Hillhouse Capital’s stake: $62,744,392
Upside Potential: 21.08%
Number of Hedge Fund Holders: 51
Trip.com Group Limited (NASDAQ:TCOM) is a global one-stop travel service provider offering a comprehensive range of travel products, services, and content through advanced technology and a vast ecosystem of partners. The company’s platform connects users with over 1.5 million accommodations, 640+ airlines, and 65,000 partners worldwide. It serves leisure and business travelers with online and offline support, personalized experiences, and mobile-first convenience. Its open platform enables ecosystem partners to reach global audiences and expand their offerings, reinforcing our international presence and leadership.
Trip.com Group Limited (NASDAQ:TCOM) delivered strong financial performance in 2024, with full-year net revenue reaching RMB 53.3 billion, a 20% year-over-year increase driven by resilient travel demand. The accommodation segment contributed RMB 21.6 billion (up +25% Year-over-year), while transportation ticketing generated RMB 20.3 billion (+10%). Packaged tours surged 38% to RMB 4.3 billion, led by a 100% growth in international business, and corporate travel rose 11% to RMB 2.5 billion. International revenue comprised 10% of total revenue, up from 2023, with Q4 international bookings growing 70% year-over-year. AI tools like TripGenie and itinerary personalization boosted engagement, and tailored offerings for seniors and youth fueled demand. Inbound travel soared due to relaxed visa policies, and outbound bookings surpassed pre-pandemic levels.
Trip.com maintains a positive 2025 outlook, driven by robust travel demand, expanding international flight capacity, and rising cross-border travel. During Chinese New Year, outbound bookings rose over 20% and inbound travel saw triple-digit growth. While hotel prices remain slightly below 2024 levels, gradual recovery and increased supply reflect industry confidence. Continued investment in infrastructure and AI will support sustained growth.
