Hillhouse HHLR's Q3 Holdings: Chinese Concept Stocks Dominate, Total Market Value Surges

As the third quarter of 2024 comes to a close, Hillhouse Capital's fund management entity, HHLR Advisors, has released its U.S. stock holdings data for the quarter. The data reveals a clear trend of heavily investing in Chinese concept stocks, with these stocks occupying an absolute dominant position in the fund's portfolio. Additionally, the total market value of HHLR Advisors' holdings grew by more than 10% compared to the previous quarter.

HHLR Advisors' holdings in Chinese concept stocks increased significantly in the third quarter, with the market cap proportion of these stocks rising from 85% in the second quarter to 93% in the third quarter. This indicates a clear trend of continuing to allocate more resources to Chinese assets. In the fund's top ten holdings for the third quarter, nine positions were occupied by Chinese concept stocks, including BeiGene, Alibaba, PDD Holdings, Legend Biotech, Vipshop, NetEase, KE Holdings, Trip.com, and Futu Holdings Ltd.

The fund's increased allocation to Chinese assets can be attributed to several factors. First, the strong performance of Chinese stocks in the third quarter encouraged HHLR Advisors to maintain or even increase their positions in these stocks. Second, the fund has consistently been increasing its allocation to Chinese assets, aligning with its long-term investment strategy. Third, HHLR Advisors' holdings are mainly focused on technology and e-commerce sectors, which have shown significant growth potential in the Chinese market.

HHLR Advisors' decision to increase their holdings in Chinese concept stocks is a strategic move that aligns with the fund's long-term investment goals. By capitalizing on the strong performance of these stocks and maintaining a focus on technology and e-commerce sectors, the fund is positioning itself to benefit from the long-term growth prospects of Chinese companies.

The fund's top holdings, such as BeiGene and Alibaba, saw significant appreciation in the third quarter, with BeiGene increasing by 57.36% and Alibaba by 47.39%. This strong performance likely encouraged HHLR Advisors to maintain or even increase their positions in these stocks. Additionally, the fund's increase in holdings of e-commerce firms and technology companies, such as Alibaba, JD.com, Vipshop, NetEase, Trip.com, ZTO Express, and Futu Holdings Ltd, may be due to their growth potential in the Chinese market.

In summary, HHLR Advisors' decision to increase their holdings in Chinese concept stocks aligns with their long-term investment goals. By capitalizing on the strong performance of these stocks and maintaining a focus on technology and e-commerce sectors, the fund is well-positioned to benefit from the long-term growth prospects of Chinese companies. As the fund's top holdings have shown strong performance, HHLR Advisors might be confident in their ability to identify and invest in promising Chinese companies.