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.
8. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Hillhouse Capital’s stake: $8,410,704
Upside Potential: 26.48%
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading foundry. The company manufactures semiconductors using proprietary customer designs, offering a full suite of wafer fabrication processes, including CMOS, RF, and BiCMOS. It provides design, mask making, TSMC 3DFabric® packaging, and testing services. In 2024, we produced 34% of the “Foundry 2.0” market, up from 28% in 2023. The company’s scale, especially in advanced technologies, and a global customer base, underpin its competitive edge across the semiconductor industry.
In Q1 2025, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported revenue of $25.5 billion, down 5.1% sequentially due to smartphone seasonality but supported by AI demand. CapEx reached $10.06 billion, and cash rose to $81 billion. For Q2, revenue is forecasted at $28.4–29.2 billion with a gross margin of 57–59%. The company guided full-year CapEx of US$38–42 billion, largely allocated to advanced technologies and packaging.
During TSMC’s Q1 2025 earnings call, executives addressed geopolitical risks, the impact of China’s H20 ban, and global tariffs. Despite uncertainties, TSMC affirmed strong AI demand, particularly outside China, and reiterated full-year growth and capacity plans. Expansion in the US, Japan, and Europe remains on schedule, with Arizona fabs ramping ahead of plan. Management emphasized fair treatment in subsidies and clarified that US R&D centers will initially support local operations. While margin dilution from overseas expansions is expected, TSMC continues to prioritize sustainable dividends over share buybacks.
7. Danaher Corporation (NYSE:DHR)
Hillhouse Capital’s stake: $3,002,284
Upside Potential: 26.77%
Number of Hedge Fund Holders: 101
Danaher Corporation (NYSE:DHR) is a global science and technology company focused on improving human health through its 15+ operating companies in biotechnology, life sciences, and diagnostics. Operating in over 50 countries, Danaher emphasizes recurring revenue, a direct sales model, and the Danaher Business System (DBS). Its strategy centers on competitive strength, smart capital allocation, and talent retention. Growth is driven by innovation, acquisitions, and portfolio optimization, with performance measured through financial and non-financial metrics.
Danaher Corporation (NYSE:DHR) saw highlighted better-than-expected performance in Q1 2025, driven by strong bioprocessing demand and elevated respiratory diagnostics at Cepheid. Revenue totaled $5.7 billion, with flat core revenue year-over-year. The company emphasized recurring revenue strength, product innovation, and resilience amid global uncertainty in its earnings call. Danaher reaffirmed its 2025 guidance with 3% core revenue growth and adjusted EPS of $7.60–$7.75, leveraging its Danaher Business System and strong financial position to navigate challenges and invest in long-term growth.
Danaher reported strong bioprocessing performance, driven by consumables growth and improving equipment demand, leading to a raised 2025 outlook. They expect high-single-digit growth, supported by strong orders and a book-to-bill above one. Tariff impacts, estimated at $350 million, are being offset through pricing actions, manufacturing shifts, and cost savings. Life Sciences guidance was reduced due to US academic and government weakness, though China remains stable outside of VBP pressures.
6. Alibaba Group Holding Limited (NYSE:BABA)
Hillhouse Capital’s stake: $414,394,167
Upside Potential: 34.41%
Number of Hedge Fund Holders: 107
Bernstein recently upgraded Alibaba Group Holding Limited (NYSE:BABA) to Outperform from Market-Perform, citing optimism about AI-driven growth in Alicloud and improved capital allocation. The firm raised its price target to $165 from $104 for US shares. The firm highlighted that Alibaba’s shares have surged since China’s “DeepSeek moment,” as investors increasingly value Alibaba Cloud in a sum-of-the-parts analysis. While AI hype may have cooled, Bernstein believes Alibaba’s earnings outlook has improved due to its more disciplined investment strategy, focusing on AI infrastructure over global e-commerce expansion. According to Bernstein, Alibaba Cloud must grow revenues by 25–30% by FY2026 to offset high capex, but its higher margins make it a strong contender in China’s AI race. Domestic e-commerce improvements, including stronger ad tech and rising commissions, also bolster the bullish view.
5. Futu Holding Limited (NASDAQ:FUTU)
Hillhouse Capital’s stake: $89,453,057
Upside Potential: 37.00%
Number of Hedge Fund Holders: 38
Futu Holdings Limited (NASDAQ:FUTU) is a Hong Kong-based fintech company that provides digital brokerage and wealth management services. Through its flagship platform, moomoo, Futu offers online trading for stocks, ETFs, and options across markets like the US, Hong Kong, and China. The company combines technology with financial services, targeting retail investors with tools for research, education, and portfolio management, and is known for its user-friendly, data-rich investing experience.
Futu Holdings Limited (NASDAQ:FUTU) reported strong Q4 and FY2024 results, exceeding guidance with 215,000 new paying clients in Q4 and over 2.4 million total, a 41% YoY increase. The company projects 800,000 new clients in 2025, citing continued growth in Japan, Malaysia, Hong Kong, and Singapore. Total revenue rose 87% YoY to HK$4.4B, driven by increased trading activity, especially in US and Hong Kong markets. Client assets hit HK$743B, up 43% YoY. Futu saw robust interest in crypto and AI-related stocks, and introduced key features like US margin trading and Options Strategy Builder. Wealth management AUM surged 93% YoY, bolstered by money market funds and structured products. Operating margin grew to 50%, and net income jumped 113% YoY to HK$1.9B. AI integration and crypto expansion remain strategic focuses for 2025.
4. KE Holdings Inc. (NYSE:BEKE)
Hillhouse Capital’s stake: $207,432,704
Upside Potential: 37.96%
Number of Hedge Fund Holders: 47
KE Holdings Inc. (NYSE:BEKE), also known as Beike, is China’s leading integrated online and offline platform for housing transactions and services. Founded in 2001 by Zuo Hui, the company launched Beike in 2018 to centralize real estate services. It operates through platforms like Lianjia and Deyou, offering services in home sales, rentals, renovation, and financing.
KE Holdings Inc. (NYSE:BEKE) is focused on adapting to a maturing Chinese real estate market by enhancing service quality, reducing customer decision-making risk, and leveraging AI to empower agents. The company emphasized personalized, trustworthy service and launched a platform growth strategy that expanded its network to nearly 49,700 stores and 445,000 agents. KE Holdings Inc. (NYSE:BEKE) is leveraging advanced AI technologies to enhance growth across its business lines. The company has outlined a three-pronged AI strategy targeting the service, supply, and platform sides. The company has developed proprietary AI models, including the large language model “ChatHome” and image model “Dreamhome,” and has integrated these into tools like the Pudding home-seeking assistant, AI renovation design software, and digital agents such as “Sun Xiaosheng.” These innovations are already delivering measurable efficiency gains—AI agents handle 60% of rental owner tasks and reduce business analysts’ workload by 85%. KE Holdings has also collaborated with foundational models like DeepSeek to boost user experience in VR home tours and property recommendations. The company plans to increase AI investment in 2025 to further optimize operations and scalability.
3. PDD Holdings Inc. (NASDAQ:PDD)
Hillhouse Capital’s stake: $264,809,372
Upside Potential: 39.33%
Number of Hedge Fund Holders: 85
PDD Holdings Inc. (NASDAQ:PDD) is a global commerce group that operates platforms like Pinduoduo and Temu, aiming to boost digital inclusion and support small businesses. Revenue comes from transactions and online marketing services offered to merchants. Pinduoduo features social-driven shopping and a next-day grocery service, Duo Duo Grocery. Temu, an e-commerce platform launched in 2022, serves global markets with value-priced goods. Both platforms leverage logistics partnerships and technology to streamline operations and improve customer experiences.
PDD’s Q4 2024 earnings report showed a 24% revenue increase to 110.61 billion yuan, with net profit rising by 18% to 27.45 billion yuan. However, the company reported its slowest quarterly revenue growth since early 2022, attributed to weaker transaction services growth and global challenges. Temu, a discount e-commerce platform owned by PDD Holdings Inc. (NASDAQ:PDD), is facing challenges in the US due to new 145% tariffs on Chinese imports and the removal of the de minimis exemption. These changes have led to increased operational costs and reduced user engagement, with a Morgan Stanley survey indicating a drop in US consumer usage from 27% in September 2023 to 19% in April 2025.
However, according to a report by the Wall Street Journal, Pinduoduo, another platform owned by PDD, announced plans to invest over $13 billion over the next three years to support merchants and enhance its e-commerce ecosystem. This investment aims to bolster merchant operations amid rising challenges, including intensified domestic competition and international geopolitical tensions. Despite all the negatives, the stock is trading at a super-cheap forward PE of 7.38x.
2. BeiGene, Ltd. (NASDAQ:ONC)
Hillhouse Capital’s stake: $702,711,832
Upside Potential: 43.9%
Number of Hedge Fund Holders: 30
BeiGene, Ltd. (NASDAQ:ONC) is a global oncology company dedicated to developing innovative, affordable cancer treatments. With a robust pipeline and a growing commercial portfolio, it focuses on hematology and solid tumors. Its lead product, BRUKINSA®, a best-in-class BTK inhibitor, is approved in over 70 markets. BeiGene integrates research, development, and manufacturing in-house, enabling faster, cost-effective drug development and positioning it as a leader in the evolving oncology landscape.
In Q1 2025, BeiGene reported $1.1 billion in total revenue, a 49% increase from Q1 2024, driven by strong global sales of BRUKINSA ($792M, +62%) and TEVIMBRA ($171M, +18%). The company achieved positive GAAP operating profit and net income for the first time, with a $272 million improvement year-over-year. Operating expenses rose 6%, while gross margin improved to 85%. BeiGene also delivered its third consecutive quarter of positive operating cash flow, improving by $353 million year-over-year.
BeiGene reported strong Q1 2025 results with $136 million in non-GAAP net income and maintained full-year guidance of $4.9–$5.3 billion in revenue. The company is enhancing supply chain resiliency through global manufacturing investments, including its US-based Hopewell, NJ facility. It’s progressing key programs like BRUKINSA and TEVIMBRA, advancing multiple Phase II/III trials, and planning a pivotal head-to-head study for its BTK degrader. BeiGene also aims for GAAP breakeven and positive cash flow in 2025, despite tariff uncertainties.
1. JD.com, Inc. (NASDAQ:JD)
Hillhouse Capital’s stake: $58,592,300
Upside Potential: 59.79%
Number of Hedge Fund Holders: 78
JD.com, Inc. (NASDAQ:JD), also known as Jingdong, is one of China’s largest e-commerce companies, specializing in online retail and logistics. Founded in 1998 and headquartered in Beijing, JD operates a highly efficient supply chain and advanced delivery network, offering products ranging from electronics to groceries. Known for its commitment to authenticity and speed, JD leverages cutting-edge technologies like AI and automation to enhance customer experience and drive innovation in digital commerce.
On April 28, Citi lowered JD.com’s price target from $56 to $51 while maintaining a Buy rating. Citi cited JD.com’s aggressive expansion into the food delivery sector, which has sparked investor concerns about profitability. Shares of JD.com, Inc. (NASDAQ:JD) and Meituan have declined sharply in recent weeks. Citi views JD’s recruitment of former Meituan executive Qing Guo as a strategic response to competitive threats from Meituan’s Insta-shopping. While questions remain about the sustainability of recent order growth, especially after subsidies end, JD.com’s robust first-party supply chain and logistics capabilities, which Citi sees as key advantages for growth in food delivery and on-demand retail. The Chinese company appears well-positioned despite short-term pressures on margins and stock performance.
While we acknowledge the growth potential of JD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than JD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
