Authored by Summer Zhen
In a recent turn of events, hedge funds that heavily invested in the popular Chinese e-commerce giant PDD Holdings are facing staggering losses amounting to billions of dollars. This unfortunate situation was triggered by a sharp decline in PDD’s shares following negative remarks made by its executives.
The U.S.-listed shares of PDD, which owns the budget-friendly retailer Temu, took a nosedive of 33% this week and 30% in the third quarter.
Let’s delve into the figures – as of June, global hedge funds collectively held 102.8 million shares of PDD, a significant increase from the previous quarter’s 91.7 million shares. However, the recent plummet in PDD’s shares suggests that the value of these holdings may have plummeted by approximately $4 billion.
While it remains uncertain whether hedge funds have adjusted their positions since then, it is evident that the recent downturn has had a substantial impact on their investments. Notable hedge funds such as HHLR Advisors, Tairen Capital, and Greenwoods Asset Management are among those affected.
2024-08-29 21:47:39
Original post available on finance.yahoo.com