In this article, we will discuss 5 best stocks to invest in according to Chinese billionaire Lei Zhang. If you want to read our detailed analysis of Zhang’s history, investment philosophy, and hedge fund performance, go directly to 10 Best Stocks to Invest In According to Chinese Billionaire Lei Zhang.
5. Enstar Group Limited (NASDAQ: ESGR)
Zhang’s Stake Value: $417,594,000
Percentage of Lei Zhang’s 13F Portfolio: 4.29%
Number of Hedge Fund Holders: 11
Enstar Group Limited (NASDAQ: ESGR) buys and manages insurance and reinsurance firms, as well as run-off insurance and reinsurance portfolios. It was incorporated in 2001 and is placed fifth on the list of 10 best stocks to invest in according to Chinese billionaire Lei Zhang. Enstar Group Limited (NASDAQ: ESGR) currently has a $5.07 billion market capitalization and was able to deliver a 34.47% return in the past 12 months.
On August 18, Enstar Group Limited (NASDAQ: ESGR) announced that it issued 3.100% senior unsecured notes due 2031, whose principal amount is $500 million. The money will be utilized to fund the purchase of its 4.500% senior notes due 2022.
The hedge fund chaired by Lei Zhang holds 1.75 million shares in Enstar Group Limited (NASDAQ: ESGR) worth over $417 million, representing 4.29% of their portfolio, making it the most significant shareholder of the company.4. I-Mab (NASDAQ: IMAB)
Zhang’s Stake Value: $555,427,000
Percentage of Lei Zhang’s 13F Portfolio: 5.71%
Number of Hedge Fund Holders: 18
I-Mab (NASDAQ: IMAB) is a clinical-stage biopharmaceutical business that develops, manufactures, and sells biologics to treat cancer and autoimmune illnesses. It was founded in 2014 and is placed fourth on the list of 10 best stocks to invest in according to Chinese billionaire Lei Zhang. I-Mab (NASDAQ: IMAB) shares have offered investors more than 93% in returns over the course of the past 12 months.
On July 30, I-Mab (NASDAQ: IMAB) announced that the US Food and Medication Administration (FDA) approved Protollin, an experimental drug for treating Alzheimer’s disease, allowing a Phase 1 clinical study to begin. On July 13, Cantor Fitzgerald analyst Louise Chen raised the price target on I-Mab (NASDAQ: IMAB) to $95 from $90 and reiterated an “Overweight” rating on the shares.
Hillhouse Capital Management holds 6.62 million shares in I-Mab (NASDAQ: IMAB), worth over $555 million. This represents 5.71% of their portfolio. There were 18 hedge funds in our database that held stakes in I-Mab (NASDAQ: IMAB) in the second quarter, compared to 20 funds in the quarter earlier.
3. iQIYI, Inc. (NASDAQ: IQ)
Zhang’s Stake Value: $602,143,000
Percentage of Lei Zhang’s 13F Portfolio: 6.19%
Number of Hedge Fund Holders: 27
iQIYI, Inc. (NASDAQ: IQ) and its subsidiaries offer online entertainment services under the name of iQIYI. The company was founded in 2009 and stands third on the list of 10 best stocks to invest in according to Chinese billionaire Lei Zhang. iQIYI, Inc. (NASDAQ: IQ) currently has a market capitalization of $6.87 billion.
On August 12, iQIYI, Inc. (NASDAQ: IQ) announced earnings for the second quarter of 2021. It declared earnings per share of -$0.27, beating the estimates by $0.05. However, revenue over the period was $1.2 billion, up 3.0% YoY, but missing the predictions by $50 million. On August 13, KeyBanc analyst Hans Chung lowered the firm’s price target on iQIYI, Inc. (NASDAQ: IQ) to $19 from $26 and maintained an “Overweight” rating on the shares. The analyst said that while the limited regulatory environment influences the content release schedule and poses near-term hurdles, enhancing the quality and amount of original content may generate a steady improvement in sub-churn rates.
The hedge fund chaired by Lei Zhang holds 38.65 million shares in iQIYI, Inc. (NASDAQ: IQ), worth over $602 million.
2. Pinduoduo Inc. (NASDAQ: PDD)
Zhang’s Stake Value: $876,708,000
Percentage of Lei Zhang’s 13F Portfolio: 9.02%
Number of Hedge Fund Holders: 49
Pinduoduo Inc. (NASDAQ: PDD) provides an e-commerce platform in the People’s Republic of China through its subsidiaries. The company was founded in 2015 and ranks second on the list of 10 best stocks to invest in according to Chinese billionaire Lei Zhang. Pinduoduo Inc. (NASDAQ: PDD) currently has a $101.47 billion market capitalization.
On August 6, China Renaissance analyst Charlie Chen upgraded Pinduoduo Inc. (NASDAQ: PDD) to “Buy” from “Hold” with a price target of $150. On May 26, Pinduoduo Inc. (NASDAQ: PDD) posted earnings for the first quarter of 2021. It declared earnings per share of -$0.23, beating the estimates by $0.15.
The hedge fund managed by Lei Zhang owns 6.90 million shares in Pinduoduo Inc. (NASDAQ: PDD), worth over $876 million, representing close to 9.02% of their portfolio. Pinduoduo Inc. (NASDAQ: PDD) saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 49 in the second quarter compared to 56 positions in the previous quarter.
Baillie Gifford, in its second-quarter 2021 investor letter, mentioned Pinduoduo Inc. (NASDAQ: PDD). Here is what the fund said:
“As many countries enjoy a relaxation of Covid restrictions, Mr Market is focussed on short-term beneficiaries of ‘the pleasure after the plague’. There are
interesting parallels with the Roaring 20s here, but to our minds, they extend beyond post-pandemic hedonism. Much of the new wealth created in the 1920s was patchily distributed and accompanied by a pervasive sense that the older generation had let down younger people. In 1920, John F. Carter, an irate 23-year-old wrote “the older generation had certainly pretty well ruined this world before passing it on to us. We have been forced to live in an atmosphere of ‘tomorrow we die,’ and so, naturally, we drank and were merry.…” (Click here to see the full text)
1. BeiGene, Ltd. (NASDAQ: BGNE)
Zhang’s Stake Value: $1,878,025,000
Percentage of Lei Zhang’s 13F Portfolio: 19.33%
Number of Hedge Fund Holders: 21
BeiGene, Ltd. (NASDAQ: BGNE) discovers, develops, manufactures, and markets cancer therapies. The company was founded in 2010 and is placed first on the list of 10 best stocks to invest in according to Chinese billionaire Lei Zhang. BeiGene, Ltd. (NASDAQ: BGNE) shares have returned 14.52% to investors over the course of the past 12 months.
On August 18, BeiGene, Ltd. (NASDAQ: BGNE) declared that the marketing authorization application for Brukinsa, a therapy option for people with Waldenström’s macroglobulinemia, a rare non-Hodgkin lymphoma, has been accepted by Swissmedic, the Swiss Agency for Therapeutic Products. On June 14, SVB Leerink analyst Andrew Berens raised the firm’s price target on BeiGene, Ltd. (NASDAQ: BGNE) to $417 from $388 and kept an “Outperform” rating on the shares.
Lei Zhang’s Hillhouse Capital Management holds 5.47 million shares in BeiGene, Ltd. (NASDAQ: BGNE), worth over $1.8 billion, representing 19.33% of their portfolio. In the second quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $6.19 billion in BeiGene, Ltd. (NASDAQ: BGNE), down from 19 the preceding quarter worth $6.24 billion.
You can also take a peek at 10 Best Stocks to Invest In According to Philip Timon’s Owls Nest Partners and 10 Best Stocks to Invest in 2021 For Long-Term Profits
