Here’s Why JD.com (JD) Shares Declined in Q1

Baron Funds, an investment management company, released its “Baron Emerging Markets Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund gained 2.68% (Institutional Shares), compared to a 3.96% return for its principal benchmark, the MSCI EM Index, and a 4.27% return for the MSCI EM IMI Growth Index. High volatility and swings in sentiment and leadership drove the fund to modestly underperform the core benchmark and the all-cap growth proxy in the period. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Emerging Markets Fund highlighted stocks like JD.com, Inc. (NASDAQ:JD) in the first quarter 2023 investor letter. Headquartered in Beijing, the People’s Republic of China, JD.com, Inc. (NASDAQ:JD) is a supply chain-based technologies and services provider. On June 23, 2023, JD.com, Inc. (NASDAQ:JD) stock closed at $34.87 per share. One-month return of JD.com, Inc. (NASDAQ:JD) was 5.35%, and its shares lost 46.86% of their value over the last 52 weeks. JD.com, Inc. (NASDAQ:JD) has a market capitalization of $56.354 billion.

Baron Emerging Markets Fund made the following comment about JD.com, Inc. (NASDAQ:JD) in its first quarter 2023 investor letter:

“JD.com, Inc. (NASDAQ:JD) is one of the three largest e-commerce platforms in China. Shares declined after the company reported a slowdown in fourth quarter sales and commented that deliberate culling of unprofitable SKUs would also be a drag on headline revenue growth in the first half of 2023. We believe the slowdown was driven by the peak in Chinese COVID lockdowns, which have since ended, and the elimination or reduction of unprofitable business is better for long-term margins and returns on capital. We remain investors.”

JD.com, Inc. (NASDAQ:JD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held JD.com, Inc. (NASDAQ:JD) at the end of first quarter 2023 which was 64 in the previous quarter.

We discussed JD.com, Inc. (NASDAQ:JD) in another article and shared the list of stocks under $50 billionaires are loading up on. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.