5 Chinese Stocks in Cathie Wood’s Portfolio

1. JD.com, Inc. (NASDAQ:JD)

ARK Investment Management’s Stake Value: $173.35 million

Percentage of ARK Investment Management’s 13F Portfolio: 0.41%

Number of Hedge Fund Holders: 66

JD.com, Inc. (NASDAQ:JD) ranks first on the list of Chinese stocks in Cathie Wood’s portfolio, with approximately 2.4 million shares valued at $173.35 million, amounting to a 0.41% slice of her overall holdings. The company is a Chinese e-commerce giant which also specializes in AI and robotics and has a strategic cooperation agreement with Tencent Holdings Limited (TCEHY).

On December 7, Macquarie analyst Ellie Jiang resumed coverage of JD.com, Inc. (NASDAQ:JD), setting an ‘Outperform’ rating and a $112 price target. The firm’s analyst noted that the company displays strong competencies in its supply chain and logistics infrastructure, and looks set to continue its growth momentum heading into 2022.

Investment firm Argosy Investors talked about many stocks in its Q3 2021 investor letter, and JD.com, Inc. (NASDAQ:JD) was one of them. Here’s what the fund said:

“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”

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