Per edited: Bi Luming
On February 14, EST, Bridgewater Fund submitted its position report for the fourth quarter of 2021 to the U.S. Securities and Exchange Commission (SEC). The report shows that the agency continued to increase its holdings in Chinese stocks in the fourth quarter of last year. Among them, the proportion of shares such as Pinduoduo, JD.com, and Alibaba is about 30%, in addition, Weilai, Baidu and other stocks have also been increased by Qiaoshui to varying degrees.
It is worth noting that Buffett's U.S. stock holdings changed less during the fourth quarter of 2021. Of Berkshire's more than $300 billion in U.S. stock assets, only 17 U.S. stocks have been adjusted, including a sharp increase in energy giant Chevron and its purchase of the top ten U.S. stocks. Recently, with the tension between Russia and Ukraine, international oil prices have also risen sharply to a new 7-year high.
In addition, it also accurately adds Activision Blizzard. A few weeks later, the gamemaker, known worldwide for games like World of Warcraft and Call of Duty, announced that it had sold itself to Microsoft for $68.7 billion, the largest acquisition in the history of the U.S. tech industry. If Microsoft's acquisition is successfully completed, Buffett's advance layout into Activision Blizzard's move will be expected to bring him considerable profits.
The pioneer pilot with a us stock holding of more than $4 trillion in the fourth quarter of 2021 focused on adding technology stocks and pharmaceutical stocks, and built a number of new stocks with great potential in the same period, including Tesla rival Rivian, Kyndryl and other companies independent from IBM.
Chevron's new Buffett's top ten heavy stocks
According to the China Securities News, the report shows that Buffett did not adjust much to U.S. stocks in the fourth quarter. As of the end of the fourth quarter of 2021, Berkshire's total U.S. stock holdings were about $330.952 billion. In the same period, 4 US stocks were increased, 3 new ones were added, 8 targets were reduced, and 2 positions were liquidated. Among them, the targets with more positions are: Chevron, Nu Holdings, Activision Blizzard, Liberty Sirius, Liberty Media. Other stocks with more holdings are AbbVie, Bristol-Myers Squibb, Franchise Communications, VISA, and Teva.
According to whalewisdom, Buffett increased his holdings of 9.54 million shares of Chevron stock in the fourth quarter of 2021, an increase of up to 33%. Chevron has also jumped to become Buffett's top ten heavy stocks. As of the end of the fourth quarter of 2021, Berkshire's top ten U.S. stock holdings by market capitalization include: Apple, Bank of America, American Express, Coca-Cola, Kraft Heinz, Moody's, Verizon, United Bank of America, Chevron, and Bny time Mellon.
Pioneer Navigator opened a number of new stocks
According to China Securities News, as of the end of the fourth quarter, the market value of Pioneer's U.S. stock holdings exceeded $4.40 trillion, an increase of 9.41% over the previous period. In terms of market capitalization, the top ten stocks are Apple, Microsoft, Amazon, Alphabet (Class A), Tesla, Meta, Alphabet (Class C), NVIDIA, JPMorgan Chase, and Johnson & Johnson.
Compared with the previous quarter, the list of the top ten heavy stocks of Vanguard has not changed much. Among them, in the fourth quarter, Pioneer Pilot reduced its holdings in Meta more, about 930,000 shares, and the market value of the position at the end of the period was 61.204 billion US dollars. As a result, Meta fell from the fourth largest U.S. stock in the third quarter of Vanguard to the sixth place.
In the same period, Pioneer Pilot added 2.17 million shares of Microsoft, 460,000 shares of Tesla, and 1.17 million shares of NVIDIA. As of the end of the fourth quarter, the market value of the shares held by Pioneer Pilot in the three companies reached $207.156 billion, $65.994 billion and $57.650 billion, respectively.
In the fourth quarter of 2021, Pioneer Pilot opened a number of new stocks with great potential. From the perspective of buying market value, the top five new buying targets are Tesla rivals Rivian, Kyndryl, bio-unicorn Ginkgo Bioengineering Company, well-known retail REIT company InvenTrus, and Canadian online payment company Nuvei. However, since the beginning of the year, these stocks have fallen sharply.
A number of Chinese stocks were added to the bridge
Affected by multiple unfavorable factors, the overall performance of Chinese stocks last year was sluggish.
As of Feb. 14, Alibaba's latest share price was $121.92, down more than 60 percent from its all-time high of $319.32 in November 2020.
According to the Shanghai Securities News, according to the latest disclosed position report, Qiaoshui continued to increase its holdings of 978,000 alibaba shares in the fourth quarter of last year, with an increase of 30%. At present, the stock ranks as the eighth largest heavy stock in Qiaoshui.
A number of other Chinese stocks have also received different degrees of increased positions in Qiaoshui.
Taking Pinduoduo as an example, as of February 14, Pinduoduo's latest stock price was $59.16, down more than 70% from the high of $212.6 in February last year. As of the end of the fourth quarter of last year, Bridgewater held 2.66 million shares of Pinduoduo, an increase of 740,000 shares compared with 1.92 million shares at the end of the third quarter, an increase of 38%.
In addition, Qiaoshui also added 670,000 shares of JD.com, 140,000 shares of Baidu, 146,000 shares of Bilibili, and 228,000 shares of Weilai Automobile.
Asset management giants are bullish on the Chinese market
According to the Shanghai Securities News, in recent years, Qiaoshui has been vigorously laying out the Chinese market. In its 2022 economic outlook, Bridgewater suggested that investors may be underestimating the risk of inflation and interest rate hikes, and the market may face huge volatility. Compared with the financial assets and cash of developed countries, Chinese assets are more attractive under the relatively loose policy.
In January, Bridgewater Fund disclosed information disclosure materials to the U.S. Securities and Exchange Commission that showed that the total assets of its overseas issuance of Chinese funds exceeded 34 billion yuan. Industry insiders believe that the total asset value of the Bridgewater All-weather China Fund continues to rise, indicating that the Bridgewater Fund is further optimistic about the Chinese market.
Rebecca Patterson, head of investment research at Bridgewater, believes there is an opportunity to invest in China in 2022, as China is increasing liquidity to the market, compared to the rest of the world, which is starting to raise interest rates. Patterson's statement is in line with the views of Dalio, the founder of Bridgewater. Dalio has repeatedly sung about China and said that investors should not be worried about short-term fluctuations in the market and sell Chinese assets, ultimately missing out on the dividends of China's economic development.
Not only Qiaoshui, but also many asset management giants are increasingly optimistic about investment opportunities in the Chinese market. For example, BlackRock, the world's largest asset management company, recently said that it is quite optimistic about Chinese stocks and treasury bonds, and suggested that international investors increase their investment allocation of Chinese assets.
Goldman Sachs maintained its judgment on A-share over-allocation in an outlook released late last year. It expects offshore Chinese stocks and A-shares to receive investment returns of 16% and 13% in 2022.
"After a challenging 2021, the outlook for China's stock market is improving as the Year of the Tiger approaches. We have upgraded the rating of Chinese stocks from neutral to positive. Lu Bole, chief strategist of Pictet Asset Management in Switzerland, said recently.
Daily Economic News Comprehensive Shanghai Securities News, China Securities News
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