After a series of sharp declines in stock prices, investment guru Munger significantly reduced his holdings in Alibaba!
On April 11, Daily Journal Corp, of which Munger had previously been chairman, filed its latest 13F position with the U.S. Securities and Exchange Commission (SEC). The Daily Journal sold 302,060 Alibaba American Depositary Receipts (ADRs) in the first quarter of this year, reducing its holdings from 602,000 to 300,000 and cutting Alibaba's investment position in half.
Since Munger bought Alibaba ADR at a high level in the first quarter of last year, and then increased his position sharply, the average cost of his position was above $160, and the loss of this position reduction may exceed 40%.
In addition, a few days ago, the Bridgewater All-Weather China Fund, a subsidiary of the world's largest hedge fund, also disclosed the latest data, with a total fund size of about 6.154 billion US dollars (about 39.4 billion yuan), a sharp increase from the fourth quarter of last year, that is, Qiaoshui continued to increase Chinese investment.
Qiaoshui (China), a private equity institution registered in China, has developed rapidly, and its management scale has exceeded the mark of 10 billion yuan, and its performance this year is even more outstanding.
Munger significantly reduced his holdings in Alibaba, and the position was directly cut in half
On April 11, the Daily Journal announced its latest position. As of the end of March, Daily Journal Corp held 300,000 Alibaba ADR shares, down 302,000 from 602,000 at the end of last year.
Munger bought Alibaba for the first time in the first quarter of 2021, holding 165,300 shares of Alibaba ADR, and in the first quarter of last year, Alibaba's stock price was above $220, and Alibaba's stock price has since fallen. The Daily Journal bucked the trend in the third and fourth quarters of 2021, adding about 136,700 shares and 300,000 shares, respectively.
At the end of the fourth quarter of 2021, Munger held a total of 602,000 Alibaba ADR shares, and the average cost of its positions was above $160, with a total investment of nearly $100 million, and the loss of this position reduction may exceed 40%.
Notably, Munger served as chairman of the Daily Journal from 1977. On March 28, Munger, 98, resigned as chairman of Daily Journal.
Currently, Daily Journal has $212 million under management and holds five stocks, including Bank of America, Wells Fargo, Alibaba, United Bank of America, and POSCO, all of which were bought before 2013. Among them, 2.3 million shares of Bank of America and 1.6 million shares of Wells Fargo were held, and other holdings remained unchanged in the first quarter.
Alibaba, which Bought in the first quarter of 2021, can be said to be the last company and the last investment decision that Munger bought in the Daily Journal.
Earlier, Munger said at the daily journal's annual meeting that holding securities would be at risk. Munger sees Alibaba as a reasonable investment, and at least for now, buying Alibaba stock isn't as risky as it seems.
However, Munger also said that as far as Alibaba is concerned, Alibaba's moat is not as deep as Apple and Alphabet. Although Alibaba is a large Internet retailer, the competition on the Internet will become more and more fierce.
As of the close of trading on April 11, Alibaba's stock price was reported at $101.55, with a market value of $272.916 billion, down two-thirds from its highest level.
Qiaoshui continues to increase its weight in China, and the performance of private equity products in China is thriving
Unlike Munger's reduction, Bridgewater founder Dalio continues to increase his Chinese assets.
According to the U.S. Securities and Exchange Commission (SEC), the latest disclosed data from the Bridgewater All-Weather China Fund under the world's largest hedge fund on March 30 showed that the total size of the fund was $6.154 billion, up from $5.44 billion at the end of the previous quarter, of which U.S. investors accounted for about 48%.
In addition, Qiaoshui (China) Investment Management Co., Ltd., a private equity institution registered in China, has developed rapidly, and its management scale has exceeded the mark of 10 billion yuan, and its performance this year is even more outstanding.
According to data from China Resources Trust, the net value of Qiaoshui's creative and optimal series of products has reached a new high, with an absolute income of 6% in 4 months of opening a position, calculated at 2 million copies, and has now floated a profit of 120,000.
It is worth noting that qiaoshui fund began to build a position at the end of last year, during which the market performance was not good, but qiaoshui did a large-scale asset allocation through stocks, bonds and commodity futures, effectively avoided unilateral market risks, seized the rotating market, and made an annualized return of nearly 20% under the mournful market.
As of March 24, the product's year-end net worth rose by 4.58%, significantly outperforming domestic hedge fund peers. Previously, Qiaoshui said in the roadshow that the difference between its Alpha and most domestic managers is not captured at the level of stock selection or industry, but more in the search for the inflection point of the market, such as when the stock market performs badly, it also has the opportunity to create good returns.
As a world-renowned macro strategy private placement, in Qiaoshui's underlying investment strategy, the correlation with the CSI 300, CSI 500 and ChiNext indexes is only 0.5, 0.42 and 0.5, the correlation with the China Bond Treasury Bond Index and the Corporate Bond Index is 0.37 and 0.35 respectively, the correlation with other domestic private equity managers is generally less than 0.5, and the correlation with public funds is also about 0.5.
Perhaps it is precisely because of the excellent allocation strategy of stocks, commodities and bonds that Qiaoshui's private equity products still outperform the market after experiencing large market fluctuations.
In addition, Qiaoshui's performance in overseas markets is also quite eye-catching. Bridgewater's flagship product, bridgewater Pure Alpha Fund, earned 16.34% in the first quarter of this year and rose 9.23% in its monthly net worth in March.
Karen Canyeur Tabour, co-chief investment officer for sustainable development at Bridgewater, said the huge supply shock has allowed us to live with the highest inflation in four decades. Demand exceeds supply in every region, especially on commodities, and oil prices are at least as tight as they were in 2011, likely to be tighter than in 2011, and can get very large price fluctuations without interference. "China is one of only a few truly independent economies in the world – with a large enough monetary/fiscal credit system, being more self-sufficient, and looking different in assets and moving at its own pace in a way that no one else can do."