GreenWood Investors LLC, an investment management firm, released its annual 2023 investor letter. A copy of the same can be downloaded here. 2023 was excellent for the fund’s investors, thanks to the collaborative and constructive engagements, which added immense value to the performance. Despite that, the firm is still seeking more challenges to continue to drive forward. As for the 2023 returns, its separate accounts, open to any investor, delivered a remarkable return of 28.0%, . In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
GreenWood Investors featured stocks such as PDD Holdings Inc. (NASDAQ:PDD) in the fourth quarter 2023 investor letter. Headquartered in Dublin, Ireland, PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group. On February 7, 2024, PDD Holdings Inc. (NASDAQ:PDD) stock closed at $128.78 per share. One-month return of PDD Holdings Inc. (NASDAQ:PDD) was -14.90%, and its shares gained 37.18% of their value over the last 52 weeks. PDD Holdings Inc. (NASDAQ:PDD) has a market capitalization of $171.096 billion.
GreenWood Investors stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its fourth quarter 2023 investor letter:
“This herd-like mentality opened up two extremely high-quality investment opportunities for us in the back half of 2023. Using insights gleaned from our close proximity to e-commerce at CTT, we undertook a multi-month effort to underwrite PDD Holdings Inc. (NASDAQ:PDD). This US-listed Irish holding company owns China’s leading disruptive marketplace called PinDuoDuo. During the summer, as it became unbearable for most investors to remain publicly invested in Chinese equities, we took a position in PDD.
During our diligence phase, a local Hong Kong investor that was invested in the company noted that Western investors should just stay away as they won’t appreciate PDD’s operating culture. He highlighted how the company gives no guidance, talks to no investors, and does not optimize its business for the short term. This means that quarterly earnings often have very large deviations from consensus, driving >20%+ moves in the stock. Paired with an extremely bearish market sentiment on Chinese equities, this combination became “uninvestable for those in western markets…” (Click here to read the full text)
PDD Holdings Inc. (NASDAQ:PDD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held PDD Holdings Inc. (NASDAQ:PDD) at the end of third quarter which was 67 in the previous quarter.
We discussed PDD Holdings Inc. (NASDAQ:PDD) in another article and shared the list of best internet retail stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
