Favorite Chinese concept stocks? "The Big Short" prototype increased holdings of Alibaba and Baidu in the second quarter
Michael Burry increased his holdings of Alibaba and Baidu stocks in the second quarter of 2023, holding 155,000 shares of Alibaba worth over $11 million and increasing his investment in Baidu to 75,000 shares with a market value of approximately $6.5 million. At the same time, he reduced his position in JD.com, but it still remains an important part of his investment portfolio. Chinese internet stocks performed weakly in 2024, with Alibaba ADR rising by less than 3% and Baidu ADR falling by over 29%
According to the Zhitong Finance and Economics APP, as disclosed in the Securities and Exchange Commission (SEC) filing released on Wednesday, the prototype character Michael Burr from the movie "The Big Short" further shifted his investment portfolio towards Chinese internet stocks in the second quarter, including Alibaba (BABA.US) and Baidu (BIDU.US).
As of June 30th, Burr's largest position was in Alibaba, valued at over $11 million. The filings show that Burr's company, Scion Asset Management, has been increasing its holdings in this Chinese e-commerce giant over the past few quarters, with a total of 155,000 shares of Alibaba stock held by his company as of the reporting date. By the end of the first quarter, this stock was also the most held by his company.
In addition, Burr increased his investment in Baidu, adding over 30,000 shares valued at $2 million. As per the filings, Burr held a total of 75,000 shares of Baidu stock as of June 30th, with a market value of approximately $6.5 million.
Meanwhile, Burr reduced his position in JD.com (JD.US), selling 110,000 shares valued just over $3 million. Nevertheless, this stock remains one of the most held stocks in his investment portfolio.
In 2024, Chinese concept stocks have mostly lagged behind their competitors in the US and Japan, despite a brief rebound earlier this year. According to FactSet data, as of Wednesday afternoon, Alibaba's American Depositary Receipts (ADR) traded in the US have risen by less than 3% in 2024. The performance of the KraneShares CSI China Internet ETF has been even worse, falling by nearly 4% since January 1st. Baidu's ADR traded in the US has dropped by over 29% year-to-date, while JD.com's stock price has fallen by approximately 10.5%.
Under the regulations of the Securities and Exchange Commission, institutional investment managers holding specific securities worth over $100 million are required to disclose their holdings in a 13-F filing.
These filings provide information on their holdings as of the last day of the quarter, giving some insight into their positions in stock options. However, investments in other securities and derivatives, as well as the amount of cash they may hold, are not within the scope of disclosure