The latest 13F filings for Q3 have revealed the overseas investment strategies of leading Chinese hedge funds like Hillhouse and Greenwoods. A common trend among these firms was increased exposure to U.S.-listed Chinese tech stocks, particularly Alibaba (BABA.US) and PDD Holdings (PDD.US). Notably, several funds mirrored Warren Buffett's move by aggressively buying Alphabet, Google's parent company, which has surged 46% YTD amid AI-driven cloud growth.
Hillhouse: Doubling Down on Alibaba and PDD Holdings Hillhouse's HHLR Advisors reported a 32% QoQ increase in U.S. holdings to $4.1 billion, with over 90% allocated to Chinese assets. PDD Holdings remained its top holding (up 39% YTD), while other key positions like Futu (+125%), BeiGene (+99%), and Alibaba (+92%) delivered strong returns. The fund initiated a new position in Baidu (up 54% in Q3), now its sixth-largest holding, citing AI commercialization breakthroughs. Hillhouse added to Alibaba (+58% in Q3) and PDD Holdings (+27%) while trimming winners like Futu to lock in gains.
Greenwoods: Betting Big on Alphabet, NetEase, and KE Holdings Greenwoods’ U.S. portfolio grew to $580 million in Q3 from $397 million, with Alphabet purchases (280k shares) making it the third-largest holding. The fund also increased stakes in KE Holdings, NetEase, and iQiyi but reduced exposure to Amer Sports, signaling potential consumer sector caution. At quarter-end, Huazhu and PDD Holdings dominated its portfolio (60%+ combined).
Greenwoods Capital: Loading Up on Atour, Alibaba, and PDD Holdings With U.S. assets surging to $4.44 billion (from $2.87 billion), Greenwoods Capital mirrored peers by buying Alphabet and adding Nvidia and Synopsys. It aggressively expanded in hospitality (208k+ new Atour shares) and e-commerce (Alibaba +94% YTD, PDD Holdings). The fund exited positions like Daqo New Energy and Trip.com while establishing a 2.68 million-share stake in autonomous driving firm WeRide.
Oriental Harbor: Alibaba Debuts in Top Holdings Butian’s Oriental Harbor Fund grew to $1.29 billion, adding Alibaba (221k shares, 3.06% weight) as its 10th-largest holding. The manager publicly praised Chinese internet giants’ valuation potential, noting Alibaba’s market cap at just 15.25% of Amazon’s. The fund sold Netflix (-71.5%), Amazon (-50%), Meta, and Microsoft, though Nvidia remained its top position (92% of portfolio in U.S. tech leaders).
Duan Yongping: Berkshire Buys Offset Apple Cuts The value investor’s H&H International boosted holdings to $14.7 billion, adding Berkshire Hathaway while continuing a five-quarter Apple reduction streak (still 60.42% of portfolio at $8.87 billion). New ASML shares (80k) were modest (0.53%), with trims to Nvidia and Alibaba. Positions in Occidental Petroleum, Microsoft, Disney, and TSMC were unchanged.