12 Best ADR 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 China-based multinational commerce group operating digital platforms that connect manufacturers with consumers. Its flagship platform, Pinduoduo, offers a wide range of products, including apparel, electronics, household goods, and fresh produce, primarily through a social commerce model that encourages group buying for discounts. The company also operates Temu, an international e-commerce platform targeting markets outside China. PDD serves hundreds of millions of users, with a strong presence in China and expanding global reach through Temu.

PDD Holdings Inc. (NASDAQ:PDD) reported steady financial performance in Q4 2024, with revenues rising 24% YoY to RMB 110.6 billion. For the full year, total revenue reached RMB 393.8 billion, marking a 59% increase. The company continued to drive its high-quality development strategy through a range of initiatives, including a RMB 10 billion fee reduction program, expanded logistics services for remote areas, and targeted support for premium merchants. These efforts helped over 10 million merchants lower operational costs and improve efficiency. Logistics enhancements also led to double-digit growth in order volume and enabled free shipping access for nearly 100 million users in underserved regions.

In early 2025, PDD Holdings Inc. (NASDAQ:PDD) further strengthened its platform governance by launching a merchant rights protection committee to improve transparency and communication with sellers. The company maintained its commitment to rural development by investing in agricultural technology, optimizing supply chains, and training future farming talent. Despite facing external challenges and fierce market competition, leadership remains confident that continued investment in its ecosystem will yield sustainable long-term growth. Looking ahead, management plans to deepen its support for quality merchants, expand the availability of premium products – particularly in remote areas – and cultivate a balanced ecosystem that benefits consumers, merchants, and broader communities. With 85 hedge funds owning the stock, PDD is one of the best ADR stocks to buy.