10 Best Emerging Markets Stocks to Buy According to Hedge Funds

4. PDD Holdings Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders: 85

​​​PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that owns and operates a portfolio of businesses, including the Chinese e-commerce platform Pinduoduo and the international online marketplace Temu. PDD specializes in group purchasing, enabling users to participate in collective buying deals, primarily offering agricultural products and daily necessities. Temu, launched in September 2022, has rapidly expanded into markets such as the United States, offering a wide range of affordable products. PDD ranked 1^st on our recent list of 10 Best Chinese Stocks to Buy According to Billionaires.

PDD Holdings Inc. (NASDAQ:PDD) reported a steady financial performance in the Q4 2024, with total revenue rising 24% YoY for the quarter and 59% YoY for the year. The company remained committed to its high-quality development strategy, launching several key initiatives such as a RMB 10 billion fee reduction plan, logistics support for underserved areas, and programs aimed at helping high-quality merchants thrive. These efforts delivered tangible results, with the fee reduction initiative benefiting over 10 million merchants by improving efficiency and lowering operating costs.

PDD Holdings Inc. (NASDAQ:PDD)’s logistics efforts also paid off, driving double-digit growth in order volume and providing free shipping to nearly 100 million consumers in remote regions. As management looks ahead to 2025, it plans to stay focused on enhancing platform quality by further strengthening merchant protection policies, expanding support for top-performing sellers, and increasing access to high-quality goods. However, the management team cautioned that heavy investment in ecosystem development, along with a rapidly evolving external environment and rising competition, may weigh on short-term financial results. With 85 hedge funds owning the stock, PDD ranks 4^th on our list of the best emerging markets stocks to buy according to hedge funds.