(Bloomberg) — Renowned billionaire investor David Tepper made significant moves in his investment portfolio last quarter, showing a shift towards undervalued Chinese stocks while reducing exposure to high-flying US tech companies. This strategic decision has caught the attention of other hedge fund managers who are also starting to see the potential in the Chinese market, especially considering the significant valuation gap between the two markets.
Tepper’s Appaloosa Management took a bold step by more than doubling its investment in Alibaba Group Holdings in the first quarter of the year, positioning the Chinese e-commerce giant as the largest holding in its $6.7 billion equity portfolio, as disclosed in a regulatory filing. Additionally, the fund increased its positions in PDD Holdings and Baidu Inc., and initiated new positions in JD.com and two Chinese exchange-traded funds during the same period.
While Tepper was busy accumulating Chinese stocks, he simultaneously reduced his exposure to well-known US tech giants such as Amazon.com, Microsoft Corp., Meta Platforms Inc., and Nvidia Corp. This strategic reallocation resulted in Chinese shares and ETFs making up 24% of the fund’s equity portfolio by the end of the quarter.
2024-05-16 13:45:29
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