As U.S. institutional investors' Q4 position disclosures come to an end, the holdings of overseas giants have surfaced. The fund jun sorted out the changes in the holdings of several institutions. These institutions either have in-depth research on Chinese companies and have more layouts, or have a clear investment style, and the change in positions can reflect their judgment of the market. The data shows that the selling of US stocks in technology stocks has gradually become the consensus of US institutional investors. Some institutions have begun to increase their holdings of Chinese Internet companies. Concerned about U.S. inflation, some institutions have chosen to increase their holdings of energy companies or essential consumer companies.
Let's take a look.
Wall Street mystery hedge fund, Chinese "labor model" plus Xiaopeng Automobile 12.7 times
American drama "Billions" prototype Stephen. Cohen leads point72 as the most watched investment institution in the global hedge fund market in recent years. Point72 is also one of the most "diligent" foreign institutions in the A-share market. In terms of the number of publicly disclosed publicly disclosed listed companies, this company ranks among the top foreign-funded institutions. As of now, Point72 has not set up an entity in Chinese mainland, and its actions in the Chinese market are particularly interesting. Recently, Point72 Hong Kong, a Hong Kong-registered entity of Point72, filed a position report for the end of the fourth quarter of 2021 with the SEC. As of the end of the fourth quarter, point72 Hong Kong US stock portfolio had a market capitalization of approximately US$2.885 billion.
In the fourth quarter, point72 Hong Kong also increased its holdings of both S&P 500 call and put options, with a larger increase in put options. In the same period, it increased its holdings in Xiaopeng Automobile in a large way, with an increase of 12.7 times, an increase of 155% in NetEase, an increase of 35.55 times in New Oriental, and an increase in shells. Point72 Hong Kong has also adopted the practice of increasing its call and put options with both Procter & Gamble, although the increase in call options is even greater. In the top ten heavy stocks, it increased its holdings of put options linked to Russell 2000 ETFs, an increase of 6.9 times.
Since November last year, the Russell 2000, a small-cap index of U.S. stocks, began to outperform the S&P 500, and it is generally believed that small-cap stocks rebounded stronger in the early stages of the economic recovery. Because the trauma they suffered in the recession was more severe. With high inflation and continued economic recovery, many institutions have chosen to withdraw from small-cap indices. In the past week, among the more than 2,000 ETFs in the United States, the largest outflow of funds included IWM-BlackRock Arsonic's ETF that tracked the Russell 2000 index, in addition, QQQ, which tracked the US stock technology index, also suffered a large net outflow of funds.
Xiaopeng Automobile ushered in a wave of rebound in the fourth quarter, but the beginning of 2022 fell rapidly, and there is just a trend of stabilizing and rebounding. Point72 Hong Kong significantly increased its holdings in Xiaopeng Motors in the fourth quarter.
Tiger Global Management: Increased holdings of JD.com, Pinduoduo, ZOOM
Tiger Global Management, one of the most talked about tiger hedge funds, was founded by Chase Coleman. By the end of 2021, its U.S. stock portfolio would be worth about $45.9 billion. Its shareholding is very concentrated, accounting for about 47% of the top ten heavy stocks. Tiger Global Management has not only hedge funds, but also VC investments.
As of the end of the 4th quarter of 2021, the top five heavy stocks managed by Tiger Global are JD.com, Microsoft, Donghai Group, Latin American fintech company NU, and fintech company Snowflake. The Tiger Department has a lot of layouts in the Internet and technology stocks this year, and the previous holdings of different funds have also overlapped, becoming an important force in the investment of Internet and technology stocks in the global capital market. In Q4, Tiger Global added NU. It is worth noting that it has significantly reduced its holdings in both Microsoft and Amazon, reducing its holdings in Microsoft by 35% and Amazon by 37%. In the same period, as a Chinese stock enthusiast, Tiger Global increased its holdings in a number of Chinese stocks. For example, JD.com, the largest heavy stock, increased its holdings by 5%, Video News Software ZOOM increased its holdings by 28%, and Pinduoduo increased its holdings by 12%.
The Middle East Sovereign Fund made a big increase in the fourth quarter of the fashion retail platform
The Middle East sovereign fund public investment fund public investment fund is probably the most alternative sovereign fund in the world, its operational flexibility, holding a style closer to that of Wall Street hedge funds than sovereign funds (generally speaking, sovereign funds are generally state-owned, strict risk control, and less agile than hedge funds). After the outbreak of the epidemic in 2020, public investment funds quickly bottomed out and made a lot of money. As of the end of the fourth quarter of 2021, the market value of its U.S. stock portfolio was $55.9 billion. Compared to the previous one, the portfolio of public investment funds in Q4 has not changed much. The company with the largest increase in holdings was the online luxury fashion retail platform Farfetch, which increased its position by 994%, and after the increase, Farfetch became the 23rd largest heavy stock, with a market value of more than $100 million.
But after the increase, Farfetch's stock price as a whole still declined. At present, the stock price has reached a stage low.
Former Soros trader: Cutting the position of the new energy giant of the US stock technology leader
Former Soros trader Stanley Drunkenmiller currently manages his own family office funds. As of the end of the fourth quarter, its U.S. stock portfolio was market capitalized at approximately $2.758 billion. Drunken-miller is highly respected by the investment community. He shut down his hedge fund, Ducan Capital, in 2010 and instead managed his own money. Drunkenmiller said in an interview that managing his own money is more flexible than before, sometimes taking more risk than when managing his clients' money.
As of the end of Q4, Drunkenmiller's top five holdings were e-commerce companies Coupang, Alphabet Class A shares, Microsoft, materials company FX, and Amazon.
Drunkenmiller significantly reduced its holdings in Google's parent company Alphabet A shares in the fourth quarter, as well as Amazon. Among the top 10 heavy stocks is Chevron, a new energy company that entered the quarter. At the same time, he also increased his holdings in car trading company Carvana, an increase of 280%. Newly bought Chevron has already recorded significant gains. However, the stock price of used car trading company Carvana has not shown a clear upward trend since the fourth quarter of 2021.
Bridgewater's 4th quarter U.S. stock operations were "full of words" and "inflation".
As of the end of the fourth quarter, bridgewater, the world's number one hedge fund, had a market capitalization of $17.2 billion in its U.S. stock portfolio.
The number one position is still the ETF SPY that tracks the S&P 500. However, the second largest heavy position became the FMCG leader Procter & Gamble, the third largest heavy stock was the ETF VWO of pioneer pilot tracking emerging market indexes, the fourth largest heavy stock was PepsiCo, the fifth largest heavy stock Johnson & Johnson, the sixth largest heavy stock was Costco, the seventh largest heavy stock Coca-Cola, the eighth largest heavy stock Alibaba, the ninth largest heavy stock was BlackRock's ETF that tracked emerging market indexes, and the tenth largest heavy stock McDonald's.
Today, Qiaoshui's top ten positions are no longer the bottom of ETFs, and many stocks have appeared in the top ten heavy positions, which is significantly different from a few years ago.
Bridgewater's operations in the fourth quarter may reveal its continued concerns about U.S. inflation.
Bridgewater reduced its holdings in the S&P 500 ETF SPY in the fourth quarter of 2021 and two emerging market index ETFs. Which stocks are being added? It increased its holdings in Procter & Gamble, a leading medical and health company, Anderson, a chain supermarket, and Alibaba.
U.S. inflation hit a 40-year high. A rate hike by the Federal Reserve is imminent, and there are calls from fed top brass to raise interest rates by 100 basis points by July. In this context, U.S. stocks are under pressure, and some institutional investors have begun to reduce their positions in U.S. stocks, especially high-valued technology stocks.
In general, the Fed tightens and the dollar strengthens, which may lead to a return of funds to the United States and outflows out of emerging markets. This was confirmed in the last fed tightening cycle. On May 22, 2013, then-Fed Chairman Ben Bernanke released the first export of the reduction of the amount of relief, and from May 22, 2013 to the end of 2013, the VWO (issued by the global mutual fund giant Vanguard Group), which tracked the FTSE Russell Emerging Markets Index, suffered a net outflow of $7.565 billion.
During this period, global asset management giant BlackRock's ETF EEM, which tracks the MSCI Emerging Markets Index, also suffered a net outflow of $3 billion. Although the Fed tightens, especially in the early stages, may favor the flow of money out of emerging markets, many investors believe that this time, unlike in the past, the trend of dollar return may be weaker than the Fed tightening in 2013-2015.
Rebecca Patterson, head of investment research at Bridgewater, said in an interview on Feb. 10 that U.S. inflation could remain around 5 percent after 12 months, rather than around 3 percent expected by the general market. In the next few years, the Fed may raise interest rates far more than the market has now reflected. However, Patterson believes that the dollar may be stronger against some market currencies, but may not be stronger against other market currencies. Because rising commodity prices may be good for some countries, the currencies of these countries will also be supported.
This article originated from China Fund News