12 Best ADR Stocks to Buy According to Hedge Funds

3. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 86

Sea Limited (NYSE:SE) is a Singapore-based global consumer internet company operating across three main segments: digital entertainment, e-commerce, and digital financial services. Its gaming arm, Garena, distributes and develops online games, including the popular title Free Fire. Shopee, its e-commerce platform, is a leading online marketplace in Southeast Asia and Latin America, offering a wide range of consumer products. SeaMoney provides digital payment and financial services such as mobile wallets, payment processing, and credit solutions.

Sea Limited (NYSE:SE) delivered a strong performance in 2024, with all three businesses achieving double-digit growth and exceeding original guidance, marking their second consecutive year of annual positive profit. The e-commerce division, Shopee, reached a significant milestone with GMV exceeding $100 billion and over 10 billion orders in 2024 while maintaining market leadership with 28% YoY GMV growth. The digital financial services segment demonstrated remarkable growth with an annual revenue of $2.4 billion and an adjusted EBITDA of over $700 million, both achieving over 30% YoY growth. The loan book size grew impressively by more than 60% YoY in the Q4, surpassing $5 billion while maintaining a stable 90-day NPL ratio of 1.2%.

In digital entertainment, Garena’s Free Fire made a strong comeback, with annual bookings growing 34% YoY in 2024, maintaining its position as the world’s largest mobile game by average DAU. Looking ahead to 2025, Sea Limited (NYSE:SE) expects continued growth across all segments, with Shopee’s GMV projected to grow around 20%, the loan book size expected to grow faster than Shopee’s GMV, and Garena anticipated to achieve double-digit growth in both user base and bookings. The company’s stronger financial position and experienced management through multiple cycles position it well for sustainable growth in its markets.