Michael Burry of ‘The Big Short’ fame and Temasek add JD.com, Alibaba holdings even as Ray Dalio offloads China stocks
- JD.com and Alibaba are now the biggest holdings at Burry’s Scion Asset Management
- Bridgewater recorded a 58 per cent drop in the value of its equity stakes in 45 US-listed Chinese companies in its latest 13F regulatory filing
The world’s biggest institutional investors are at odds over Chinese stocks just months after singing from the same song sheet.
While Michael Burry, the money manager of “The Big Short” fame, and Singapore’s sovereign wealth fund Temasek have been building up their positions in Chinese stocks, China bull Ray Dalio has continued to dial down his exposure amid geopolitical tensions.
Burry, who predicted the 2008 housing crash in the United States, bulked up his stake in JD.com by 233 per cent to 250,000 shares and doubled his bet on Alibaba Group Holding – this newspaper’s parent firm – to 100,000 shares in the first quarter of this year, his latest 13F filing shows. The two Chinese internet giants are now the biggest holdings at Burry’s Scion Asset Management, accounting for 20 per cent of its US$107 million stock portfolio, the filing shows.
‘Big Short’ traders made bullish bets on JD.com, Alibaba, filings show
Bridgewater recorded a 37 per cent drop to US$647 million in the value of its equity stakes in 45 US-listed Chinese companies, in its latest 13F regulatory filing for the March quarter.
Ray Dalio’s Bridgewater dialled down most Chinese stock holdings last quarter
“Investors are noting that we are at or past peak recovery momentum, which could be a signal to reduce exposure,” Goldman Sachs analysts including chief Asia-Pacific strategist Timothy Moe said in a note to clients on Saturday.
Global hedge funds have sold 45 per cent of their net purchases of Chinese stocks made in the fourth quarter of last year, Goldman said. Their net exposure to China has dropped to 10.5 per cent from 13.3 per cent in January.
“The recovery momentum fading is not good for boosting investor confidence at this stage,” said Willer Chen, a senior analyst at Forsyth Barr Asia. Whether the markets will see another bullish chorus in the future really depends on the level of consumption recovery in China, he added.