Despite the bull run in Chinese stocks this year, major U.S. hedge funds adopted divergent strategies in Q3. Latest 13F filings reveal how prominent fund managers rebalanced their Chinese equity exposures.
Oaktree Capital executed a sweeping overhaul of its Chinese equity and convertible bond positions, fully exiting holdings like KE Holdings. Billionaire investor David Tepper’s Appaloosa Management fine-tuned its portfolio, adding Baidu while moderately trimming core positions like Alibaba. Bridgewater Associates, the world’s largest hedge fund, maintained zero exposure to Chinese stocks after fully exiting in Q2.
Oaktree’s Major Portfolio Reshuffle Howard Marks’ Oaktree Capital significantly reconfigured its Chinese equity holdings. SEC filings show the firm liquidated its entire 1.5 million share position in KE Holdings worth $26.8 million.
In convertible bonds, Oaktree exited $6.9 million in Alibaba Group convertible notes and $7.3 million in Huazhu Group bonds.
Selectively, Oaktree expanded certain exposures—boosting its Kanzhun Limited position by 72,300 shares (5%), growing the stake from $28 million to $38.4 million. Convertible bond holdings saw dramatic increases: 121% in Li Auto, 93% in JD.com, and 6% in Trip.com.
Tepper’s Strategic Adjustments with Overweight Stance Appaloosa implemented precision adjustments, increasing Baidu holdings by 420,000 shares to 1 million, elevating the position’s value from $53.6 million to $137.7 million.
Simultaneously, the fund exited its entire $26.6 million KE Holdings stake and reduced Alibaba by 617,000 shares (9%), retaining a substantial $1.15 billion position. PDD and JD.com saw 10% and 11% trims respectively.
These moves reflect Tepper’s recalibration of China exposure while maintaining significant commitment. Notably, in September last year, the billionaire had famously urged investors to "buy everything Chinese."
Bridgewater’s Complete Exit Bridgewater sustained its zero-exposure policy toward U.S.-listed Chinese stocks in Q3, continuing its Q2 withdrawal.
The firm had liquidated its $1.4 billion China portfolio in Q2, including core positions in Alibaba, JD.com, Baidu, NIO, and Yum China. The selloff extended to TAL Education, Huazhu, KE Holdings, and Autohome—marking Bridgewater’s first complete exit from U.S.-traded Chinese equities in years.