Wall Street Titans Burry and Tepper Double Down on Chinese Stocks Amid Market Volatility
1min read Recently disclosed 13F reports by the U.S. Securities and Exchange Commission have highlighted significant moves by prominent Wall Street fund managers, namely Michael Burry and David Tepper, in relation to Chinese stocks. In the third quarter of 2024, Michael Burry, renowned as the inspiration behind the Hollywood film "The Big Short," made notable increases to his holdings in Alibaba and Baidu, while also boosting his previously reduced stake in JD.com.
Burry, through his hedge fund Scion Asset Management, filed a report revealing a substantial increase in his portfolio's total market value, growing from approximately $52.5 million at the end of the second quarter to about $130 million by the close of the third quarter. This was fueled by a nearly 30% augmentation of his Alibaba holdings, totaling 200,000 shares valued at around $21 million, along with a 250,000 share position in JD.com, and an increase to 125,000 shares in Baidu. Notably, Burry also added put options on these stocks, indicating a strategic move to hedge against potential declines.
Besides Burry, David Tepper, another hedge fund luminary known for his bullish stance on Chinese assets, has been reported to have doubled his holdings in Pinduoduo and increased stakes in JD.com during the same period. Despite a slight 5% reduction in Alibaba shares, it remains his top holding, representing 16% of his portfolio. Tepper's position echoes his earlier statement in September about adopting a "buy all" approach to Chinese assets, driven by China's economic stimulus measures and easing by the U.S. Federal Reserve.
These developments occur against a backdrop of volatility in the Chinese markets, with various indices showing fluctuating trends post-stimulus announcements. For Burry and Tepper, their positions in Chinese stocks highlight their continued confidence in the long-term potential amidst short-term market variations.
The strategic adjustments made by these investment giants underscore a broader sentiment of cautious optimism towards Chinese stocks among certain segments of the financial community. While geopolitical tensions still pose a risk, the cost-effectiveness of Chinese stocks compared to their U.S. counterparts remains a compelling factor for these seasoned investors.