Tiger Pacific Capital’s Bets on China Lead to Big Q3

We’re next going to analyze Tiger Pacific’s position in Vipshop Holdings Ltd – ADR (NYSE:VIPS), which returned 31.3% during the third quarter. Tiger Pacific took a lot of shares off the table during the quarter, slashing its position by 52% to 927,509 shares. The timing was good to trim its exposure to the stock, as shares have slumped in the fourth-quarter. Vipshop coverage was initiated by JPMorgan at the end of August with a ‘Neutral’ rating and $16 price target.

A total of 25 of the hedge funds tracked by Insider Monkey were bullish on the stock on June 30, down by 40% quarter-over-quarter, as hedge funds became bearish on many Chinese equities. Among those funds, Kylin Management held the most valuable stake in Vipshop Holdings Ltd – ADR (NYSE:VIPS), which was worth $243.4 million at the end of the second quarter. On the second spot was Serenity Capital, which had amassed $51 million worth of shares. Moreover, Ivory Capital (Investment Mgmt), Alkeon Capital Management, and Bloom Tree Partners were also bullish on Vipshop Holdings Ltd – ADR (NYSE:VIPS).

Lastly is Alibaba Group Holding Ltd (NYSE:BABA), the only stock in this list in which Tiger Pacific raised its stake during the third quarter, by 38%. The fund held 228,410 shares of Alibaba on September 30, and those shares returned a hefty 33% during the third quarter. Investors have become more bullish on Alibaba of late, as the stock has pushed above $105 for the first time in nearly two years in late-September.

Heading into the third quarter of 2016, a total of 69 of the hedge funds tracked by Insider Monkey were long Alibaba, a 3% rise from the end of the first quarter of 2016. More specifically, Silver Lake Partners was the largest shareholder of Alibaba Group Holding Ltd (NYSE:BABA), with a stake worth $1.30 billion as of the end of June. Trailing Silver Lake Partners was Viking Global, which had amassed a stake valued at $320.6 million. Discovery Capital Management, Fisher Asset Management, and AQR Capital Management also held valuable positions in the company.

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Disclosure: None