Renowned billionaire investor David Tepper maintained his positions in Chinese companies that he acquired earlier this year, while making adjustments to his holdings in Alibaba Group Holding Ltd. and various US tech giants.
In the second quarter, Tepper’s firm, Appaloosa Management, reduced its stake in Alibaba by approximately 7%. However, Alibaba remains the largest position in the fund’s $6.2 billion equity portfolio, comprising 12% of the total.
Tepper also made changes to his investments in other Chinese companies, increasing stakes in JD.com Inc., KE Holdings Inc., and two Chinese exchange-traded funds, while decreasing positions in PDD Holdings and Baidu Inc. Overall, Chinese shares and ETFs accounted for 26% of the fund’s equity portfolio.
Tepper continued to decrease exposure to US tech companies, including Amazon.com, Microsoft Corp., and Meta Platforms Inc. His investment in Nvidia Corp. decreased by 84% during the quarter to $85 million, representing 1.4% of the portfolio.
Tepper, along with Michael Burry of Scion Asset Management, has shown confidence in Chinese stocks, despite challenges such as a housing slump affecting consumer confidence. Chinese stocks have struggled to gain momentum this year, with the MSIC China Index registering a modest 0.4% increase, lagging behind the S&P 500’s 14% return.
Similar to Tepper, Burry maintained his bullish stance on Chinese stocks, increasing his stakes in Alibaba and Baidu while reducing exposure to JD.com. These three Chinese companies made up 46% of his $52 million equity portfolio. Alibaba and JD.com are expected to report quarterly earnings on Thursday, with Alibaba showing a 4.8% return for the year and JD.com experiencing a loss of 7.7%.
–With assistance from Yiqin Shen.
