Li Lu's Q2 2025 13F Filing: PDD Holdings Inc Investment and Portfolio Insights

Li Lu's latest 13F filing shows a significant investment in PDD Holdings Inc, with 4,608,000 shares acquired, accounting for 17.93% of the portfolio and a total value of $482.27 million. This move aligns with Li Lu's value investment philosophy, which focuses on long-term ownership of high-quality companies with a substantial "economic moat" and great growth potential.

In a recent 13F filing, Li Lu (Trades, Portfolio), the founder of Himalaya Capital, has made a notable investment in PDD Holdings Inc. (PDD), acquiring 4,608,000 shares, which accounts for 17.93% of his portfolio and has a total value of $482.27 million [1]. This move aligns with Li Lu's value investment philosophy, which emphasizes long-term ownership of high-quality companies with substantial "economic moats" and great growth potential.

Li Lu's investment in PDD is part of a broader strategy to capitalize on the company's unique social-commerce model. PDD's ecosystem-driven growth model targets underserved Chinese consumers through social-commerce innovation and merchant support programs [2]. Despite recent margin pressures, Li Lu's disciplined approach, rooted in Benjamin Graham's margin of safety and Warren Buffett's focus on economic moats, suggests that PDD's strategic reinvestments in logistics and governance position the company for long-term compounding growth.

PDD's ability to adapt to macroeconomic and regulatory headwinds further strengthens its case as a high-conviction holding. The company's shift to local fulfillment centers in international markets, such as the U.S. Temu platform, mitigates the impact of trade tariffs and enhances delivery efficiency. Domestically, PDD's focus on supporting small and medium-sized merchants creates a flywheel effect, driving platform stickiness [2].

Li Lu's investment in PDD underscores his belief in the company's long-term potential, despite short-term margin challenges. The broader institutional landscape remains underappreciative of PDD's resilience, creating a potential re-rating opportunity as market participants recognize the platform's strategic reinvention and long-term growth trajectory [2].

References:

[1] https://finance.yahoo.com/news/li-lus-strategic-move-significant-152227243.html
[2] https://www.ainvest.com/news/li-lu-pdd-holdings-bet-case-institutional-confidence-commerce-innovation-2508/