Financials Author：EqualOcean News , Yijuan Li Editor：Tao Ni Mar 18, 2022 12:10 AM (GMT+8)

The fund, whose US stock holdings are dominated by internet companies and biopharma firms, adjusted its e-commerce and EV investments in the fourth quarter of 2021

Zhang Lei

Hillhouse Capital (Chinese: 高瓴资本) denied on March 15 rumors it was liquidating its positions after losing over USD 30 billion. The fund rebutted that it owned about USD 6 billion in US stocks, the latest SEC Form 13F showed.

According to official data, Hillhouse mainly adjusted its e-commerce and new energy vehicle investments in the US stock market in the fourth quarter of 2021. The fund invested in  Amazon (AMZN: Nasdaq), increased its holding of Southeastern e-commerce firm Sea Ltd (SE: NYSE), reduced 90% of its stake in e-commerce platform Pinduoduo (PDD: Nasdaq), and disposed of shares in Alibaba (9988: HK).

It also increased its holding of NEV firm XPeng (XPEV: NYSE, 09868:HK) and Li Auto (LI: Nasdaq, 02015: HK) and reduced its positions in automaker NIO (09866: HK).

Meanwhile, Hillhouse invested heavily in biology and medicine, whose proportion in its stock pick was higher than that of the internet companies in recent quarters.

The fund held 29 biotech firms within its portfolio in the fourth quarter, ranking first in number and market valuation. At the end of the third quarter, BeiGene (BGNE: Nasdaq, 06160: HK, 688235: SSE), Legend Biotech (LEGN: Nasdaq), and I-MAB (IMAB: Nasdaq) were the three most-held stocks.

On March 14, HHLR Advisors, Hillhouse’s independent team focusing on investment in overseas secondary market, announced it held 76 stocks in the US stock market as of the end of the fourth quarter of 2021, with a total market value of about USD 6.472 billion. 

Compared with the third quarter, the number of investment targets and their market value decreased.

At the end of 2021, the top 10 stocks held by HHLR were tBeiGene, the sportswear company On (ONON: NYSE), Legend Biotech, tech firm Salesforce.com (CRM: Nasdaq), I-MAB, e-commerce firm JD.Com Inc (JD: Nasdaq), Sea Ltd, tech firm DoorDash Inc (DASH: NYSE), entertainment company IQIYI Inc (IQ: Nasdaq), and Li Auto.

These picksaccounted for 71.2% of Hillhouse’s portfolio, with BeiGene, at 22.91%, topping the list for four consecutive quarters. 

Founded by Zhang Lei in 2005, Hillhouse Capital focuses on long-term structural value investing. Since its inception, its positions have been a trendsetter for investors.