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During the first quarter of 2019, Keywise Capital Management initiated five long positions, with the biggest one in NVIDIA Corporation (NASDAQ:NVDA). This is a Santa Clara-based technology company that designs graphics processing units and system on a chip units for various industries. It has a market cap of $90.39 billion while trading at a price-to-earnings ratio of 28.02. Over the past 12 months, its stock price dropped by 44.04%, and on June 10th it had a closing price of $148.43 per share. Keywise Capital Management purchased 192,200 NVIDIA’s shares, acquiring in that manner a position that was worth $34.51 million, comprising 15.4% of its 13F portfolio at the end of March 2019.
The second biggest new position the fund obtained in a company that offers professional educational services across China, New Oriental Education & Technology Group Inc. (NYSE:EDU). The $14.19 billion market cap company is headquartered in the Haidian district of Beijing. The fund acquired 21,600 New Oriental’s shares outstanding, with a value of $1.95 million, creating a position that accounted for 0.86% of its equity portfolio. For the third fiscal quarter ended February 28, 2019, New Oriental reported net revenues of $796.72 million and diluted non-GAAP net income per ADS of $0.69, versus net revenues of $618.08 million and diluted non-GAAP net income per ADS of $0.57 for the third fiscal quarter of 2018. Year-to-date, its stock is up by 61.71%, and on June 10th it had a closing price of $89.44.
Next in line of Keywise Capital Management’s valuable first quarter portfolio additions is Tencent Music Entertainment Group (NYSE:TME), a provider of music streaming services in China with a market cap of $23.38 billion. The company’s apps such as Kugou and QQ Music, for example, are widely popular having more than 700 million active users. The stock is trading at a P/E ratio of 44.14, and over the last 6 months, it gained 2.14%, closing on June 10th with a price of $14.30 per share. The fund obtained 47,800 Tencent’s shares during Q1 2019, which had a value of $865,000. On June 4th, Loop Capital initated coverage on the stock and placed a ‘Buy’ rating with a price target of $12.89.
The other two additions to Keywise Capital Management’s equity portfolio were Pinduoduo Inc. (NASDAQ:PDD), an e-commerce company that promotes group buying deals, and NetEase, Inc. (NASDSQ:NTES), a Chinese Internet technology company. In Pinduoduo, the fund established $697,000 worth a position, on the basis of 28,100 shares outstanding, while in NetEase it had initiated a position worth $531,000 on the account of 2,200 shares. Pinduoduo has a market cap of $23.31 billion, and its stock lost 17.89% over the last 12 months, closing on June 10th with a price of $20.20 per share, and NetEase’ stock gained 3.12% over the same period, having a closing price on June 10th of $262.84.
Disclosure: None
This article was originally published at Insider Monkey.
