KE Holdings (BEKE) Fell Following Tariff Announcements

Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that released its second quarter 2025 investor letter for the “Baird Chautauqua International and Global Growth Fund”. A copy of the letter can be downloaded here. Global equity markets experienced a significant shift during the quarter, moving from notable losses to reaching new highs. Markets fell following the President’s announcement of unexpectedly severe tariffs, which raised recession fears. After a brief pause on tariffs, markets regained confidence, closing the quarter at or near all-time highs. In this environment, the Baird Chautauqua International Growth Fund underperformed its benchmark during the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baird Chautauqua International and Global Growth Fund highlighted stocks such as KE Holdings Inc. (NYSE:BEKE). KE Holdings Inc. (NYSE:BEKE) operates an integrated online and offline platform for housing transactions and services. The one-month return of KE Holdings Inc. (NYSE:BEKE) was 14.33%, and its shares gained 0.95% of their value over the last 52 weeks. On September 26, 2025, KE Holdings Inc. (NYSE:BEKE) stock closed at $19.45 per share, with a market capitalization of $23.455 billion.

Baird Chautauqua International and Global Growth Fund stated the following regarding KE Holdings Inc. (NYSE:BEKE) in its second quarter 2025 investor letter:

“KE Holdings Inc. (NYSE:BEKE) reported a solid 1Q25. The stock was impacted by tariff announcements and their potential secondary impact on the Chinese economy and real estate prices. The company’s guidance for 2Q25 came in below consensus. Management signaled for continuous cost optimization in the future. We remain positive on the stock over the long term.”

KE Holdings (BEKE) Falls as Firm Hints at Share Issuance

KE Holdings Inc. (NYSE:BEKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held KE Holdings Inc. (NYSE:BEKE) at the end of the second quarter, compared to 39 in the previous quarter. While we acknowledge the risk and potential of KE Holdings Inc. (NYSE:BEKE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KE Holdings Inc. (NYSE:BEKE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered KE Holdings Inc. (NYSE:BEKE) and shared the list of best Asian stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2025 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.