Some of Asia’s largest hedge funds scooped up large stakes in Chinese e-commerce giant Pinduoduo in the third quarter while cutting holdings in its rival JD.com, according to their latest regulatory filings, reports Reuters. The switch seemed to be driven by the view that Pinduoduo’s global ambition and inexpensive products would give it an edge over the purely domestic JD.com business.
HHLR Advisers, an investment management arm under billionaire Zhang Lei’s private equity firm Hillhouse Capital Group, reported a 43% jump in the number of shares it holds in Pinduoduo in the past quarter, while it sold 25% of its JD.com US listed American depositary receipts (ADRs).
Similarly, Hong Kong-based Greenwoods Asset Management, which manages nearly $20 billion, bought as much as 1.2 million shares in Pinduoduo, making Pinduoduo its second-largest US listed holding by the quarter end, worth over $200 million. The firm also shed 1.1 million shares in JD.com.