Tiger Pacific Unloads Several Chinese Favorites

Even though Tiger Pacific seems to be bullish on Chinese Internet companies, the fund closed its position in 58.com Inc (ADR) (NYSE:WUBA), having sold 323,858 shares it reported as of the end of June. The investor initiated a stake in the operator of online classifieds and listing platforms in China during the first quarter and the stock surged by 125% in the first nine months. In this way, it is possible that Tiger Pacific unloaded its stake as 58.com Inc (ADR) (NYSE:WUBA)’s shares reached their target price.

During the third quarter, Tiger Pacific sold its entire holding in Autohome Inc (ADR) (NYSE:ATHM), which contained 189,455 million at the end of June. Before the position was closed, Autohome Inc (ADR) (NYSE:ATHM) had represented one of Tiger Pacific longer-term holdings; the fund added the stake during the fourth quarter of 2015. Between the beginning of January 2016 and the end of September 2017, Autohome Inc (ADR) (NYSE:ATHM)’s stock advanced by 72%, although the bulk of the gains was this year, as the stock surged by 119% in the first nine months.

Vipshop Holdings Ltd – ADR (NYSE:VIPS) is another company in which Tiger Pacific unloaded its stake, having disposed of nearly 1.10 million shares. Among all companies in which Tiger Pacific closed its stake, Vipshop Holdings Ltd – ADR (NYSE:VIPS) is the only one whose stock has lost ground. Since the beginning of the year, Vipshop Holdings Ltd – ADR (NYSE:VIPS)’s shares have lost over 26%. Tiger Pacific initiated a stake in the company during the last three months of 2015 and between January 2016 and September 2017, the stock declined by over 43%. Vipshop Holdings Ltd – ADR (NYSE:VIPS) reported better-than-expected results in 2016 and the first quarter of 2017, but its second-quarter results were lower than expected, which reaffirmed the fears of some investors and analysts that Vipshop Holdings Ltd – ADR (NYSE:VIPS) is facing more pressure from its competitors. In August, Daiwa analysts downgraded the stock to ‘Hold’ from ‘Buy’, citing pressure in the apparel category and declining active users numbers. However, the analysts alsoo pointed out that Vipshop Holdings Ltd – ADR (NYSE:VIPS) is a potential acquisition target.

Disclosure: none