Campbell Wilson’s Old Well Partners Is Buying These 10 Stocks

In this article, we discuss the 10 stocks that Campbell Wilson’s Old Well Partners is buying.

Campbell Wilson is the founder and portfolio manager at Old Well Partners, a North Carolina-based hedge fund he founded in 2015. The hedge fund uses a long-term horizon to make its investments, and utilizes technology to help make its investment decisions. Old Well Partners focuses its investments in emerging markets such as India, Japan, and others, whilst also holding several notable Chinese stocks. Under the leadership of Campbell Wilson, the hedge fund invests mainly in public equities around the globe, employing both fundamental and systematic strategies. Owing to their unique edge in technological expertise, Old Well Partners also keeps an eye out for innovative private companies around the globe.

Before founding Old Well Partners, Campbell Wilson worked as Managing Director and Head of Public Investments at Global Endowment Management from 2007 till 2015. A graduate of the University of North Carolina at Chapel Hill, Wilson began his career on the investment team at Duke University. While a student at university, he also co-founded an internet company called Bradsdeals.com.

According to 13F filings for the third quarter of 2021, Campbell Wilson has assets under management (AUM) of $193.75 million, with a top 10 holding concentration of 65.54%.

Some of the top stocks in the portfolio of Campbell Wilson’s Old Well Partners include JD.com, Inc. (NASDAQ:JD), Amazon.com, Inc. (NASDAQ:AMZN), and Uber Technologies, Inc. (NYSE:UBER), along with others mentioned below.

Photo by Joshua Mayo on Unsplash

Our Methodology

13F filings for the third quarter of 2021 were used to compile this list of stocks bought by Campbell Wilson’s Old Well Partners.

Campbell Wilson’s Old Well Partners Is Buying These 10 Stocks

10. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Old Well Partners’ Stake Value: $7.48 million

Percentage of Old Well Partners’ 13F Portfolio: 3.85%

Number of Hedge Fund Holders: 67

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) starts off the list of the 10 stocks that Campbell Wilson’s Old Well Partners is buying. The Taiwan-based firm manufactures semiconductors and integrated circuits. According to 13F filings for the third quarter of 2021, Old Well Partners owned 67,000 shares in Taiwan Semiconductor Manufacturing Company Limited, worth $7.48 million, which represents 3.85% of the fund’s overall portfolio. This stock was a new addition to Wilson’s portfolio over the third quarter.

In November, Taiwan Semiconductor Manufacturing Company Limited announced plans to invest $7 billion towards the construction of a chipmaking plant in Japan, in collaboration with Sony.

Investment firm L1 Capital mentioned Taiwan Semiconductor Manufacturing Company Limited in its Q3 2021 investor letter, stating:

“Even though they are not majority State owned and we would expect many of China’s technology champions to continue to grow strongly, outcomes for shareholders may be unsatisfactory… The Fund has retained its investment in Taiwan Semiconductor Manufacturing Company (TSMC) which is well placed to maintain its global leadership in semiconductor manufacturing. Due to geopolitical risks, we limit the position size of TSMC in the Fund.”

Along with JD.com, Inc. (NASDAQ:JD), Amazon.com, Inc. (NASDAQ:AMZN), and Uber Technologies, Inc. (NYSE:UBER), Taiwan Semiconductor Manufacturing Company Limited is a top stock on the radar of institutional investors.

9. WNS (Holdings) Limited (NYSE:WNS)

Old Well Partners’ Stake Value: $7.93 million

Percentage of Old Well Partners’ 13F Portfolio: 4.09%

Number of Hedge Fund Holders: 21

WNS (Holdings) Limited (NYSE:WNS) offers business process management solutions and is headquartered in India. 21 hedge funds were long WNS (Holdings) Limited at the close of the third quarter, up from 20 a quarter ago. In Q3 2021, Old Well Partners owned approximately 97,000 shares of the company at a combined value of $7.93 million.

In November, Barrington analyst Vincent Colicchio maintained an ‘Outperform’ rating on WNS (Holdings) Limited shares, raising the price target to $104 from $95. The firm has seen its shares jump 18.21% in the last 12 months, but have been down 3.30% year to date.

Reporting its fourth-quarter earnings on 20th January, WNS (Holdings) Limited posted an EPS of $0.88, which was above consensus estimates by $0.05. Quarterly revenue came in at $261.20 million, also above estimates by $5.45 million.

8. Bilibili Inc. (NASDAQ:BILI)

Old Well Partners’ Stake Value: $8.17 million

Percentage of Old Well Partners’ 13F Portfolio: 4.21%

Number of Hedge Fund Holders: 35

Bilibili Inc. (NASDAQ:BILI) offers online entertainment services, such as video content and mobile games, primarily targeted to the youth of China. As of Q3 2021, Campbell Wilson owns roughly 123,000 shares of Bilibili Inc., representing 4.21% of his overall portfolio at a value of $8.17 million.   This company was found in the portfolio of 35 hedge funds tracked by Insider Monkey at the close of the third quarter, down from 47 hedge funds in Q2 2021.

On January 20, Citi analyst Brian Dapeng Gong lowered the firm’s price target on Bilibili Inc. to $61 from $120 and kept a ‘Buy’ rating on the company’s shares, noting that he expects Q4 results to come in largely along with consensus estimates.

Investment firm Tao Value recently released its third-quarter investor letter, where it talked about Bilibili Inc.. Here’s what the fund said:

“As witnessed in the past quarter, the government intervention in Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We also exited Bilibili (ticker: BILI), given its priced-in valuation in the context of Chinese ADR confidence loss.”

7. Pinduoduo Inc. (NASDAQ:PDD)

Old Well Partners’ Stake Value: $10.70 million

Percentage of Old Well Partners’ 13F Portfolio: 5.52%

Number of Hedge Fund Holders: 49

Pinduoduo Inc. (NASDAQ:PDD) offers an e-commerce platform through its Pinduoduo mobile app and is headquartered in China.

In December, Macquarie analyst Ellie Jiang initiated coverage of Pinduoduo Inc., giving the stock an ‘Outperform’ rating and a price target of $95. The firm’s analyst holds that the company’s earnings power is underestimated, and it looks poised to surpass 33% of Alibaba.com’s gross merchandise volume by 2023.

Investment management firm Baillie Gifford talked about Pinduoduo Inc. in its Q2 2021 investor letter. Here’s 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.”

In a similar vein, some of the greatest Growth opportunities are materialising from the companies that are shifting humankind towards more sustainable ways of consuming by driving efficiencies and eliminating surplus. Pinduoduo’s ‘farm to table’ platform is one example – cutting out huge waste in farm produce and short circuiting layers of infrastructure by matching Chinese food supply and demand through a group buying model. In a similar vein, Meituan is well on the way to developing China’s primary ‘Software as a Service’ ecosystem for food distribution which we believe has a strong chance of replacing wasteful wet markets as the primary channel for transacting in produce.

Pinduoduo’s share price pulled back following news that Chinese regulators are investigating possible anti-competitive activities by the country’s large online companies. However, Pinduoduo appears well placed to navigate such regulatory scrutiny in the long-term, helped in part by its community buying business model that benefits consumers, manufacturers and farmers alike. Its business fundamentals are stellar– the company remains the largest Chinese e-commerce platform, with over 820 million annual active users (surpassing Alibaba and JD.com), while revenue growth increased by 239% over the previous year. “

6. I-Mab (NASDAQ:IMAB)

Old Well Partners’ Stake Value: $11.59 million

Percentage of Old Well Partners’ 13F Portfolio: 5.97%

Number of Hedge Fund Holders: 18

I-Mab (NASDAQ:IMAB) is a biopharmaceutical company based in China that develops therapies for cancer and autoimmune disorders. Old Well Partners held roughly 160,000 shares in I-Mab at the close of the third quarter, worth $11.59 million representing a 5.97% slice of the fund’s overall portfolio. This is an increase of 11% over the previous quarter, where the fund held 145,000 shares in the company.

In September 2021, Andrew Fein of H.C. Wainwright gave I-Mab a ‘Buy’ rating and a price target of $95, which was up from $75. Fein noted that several of the company’s programs have shown clinical efficacy, which will potentially attract new partnerships in the future.

5. ZTO Express (Cayman) Inc. (NYSE:ZTO)

Old Well Partners’ Stake Value: $12.38 million

Percentage of Old Well Partners’ 13F Portfolio: 6.38%

Number of Hedge Fund Holders: 20

ZTO Express (Cayman) Inc. (NYSE:ZTO) is next on the list of top stocks to buy according to Campbell Wilson’s Old Well Partners. The firm offers delivery and logistics services in China. Old Well Partners owns roughly 404,000 shares in ZTO Express (Cayman) Inc. at the end of the third quarter, worth $12.38 million and representing a 6.38% portion of the fund’s overall portfolio.

In early January, Citi analyst Lu Xu reiterated a ‘Buy’ rating on ZTO Express (Cayman) Inc. shares, and raised the price target to $40.90 from $38.80, noting that the company remains the analyst’s top pick in the delivery segment, owing to its “attractive valuation and better-than-peers cost advantage as the industry leader.” Xu also maintains a positive outlook on the company in FY22.

4. BeiGene, Ltd. (NASDAQ:BGNE)

Old Well Partners’ Stake Value: $13.09 million

Percentage of Old Well Partners’ 13F Portfolio: 6.75%

Number of Hedge Fund Holders: 16

BeiGene, Ltd. (NASDAQ:BGNE) is a commercial-stage biopharmaceutical company that develops therapies for cancer and is based in China. As of the third quarter of 2021, Campbell Wilson owns 36,000 shares of BeiGene, Ltd. worth $13.09 million, representing 6.75% of the fund’s overall investments.

On January 13, JPMorgan analyst Tony Ren initiated coverage of BeiGene, Ltd. with an ‘Overweight’ rating and a price target of RMB 238. The firm’s EPS for the third quarter came in at -$4.46, above expectations by $0.24.

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

Old Well Partners’ Stake Value: $13.35 million

Percentage of Old Well Partners’ 13F Portfolio: 6.89%

Number of Hedge Fund Holders: 66

JD.com, Inc. is next on the list of top stocks to buy according to Campbell Wilson’s Old Well Partners. According to his Q3 portfolio, Wilson owns around 185,000 shares of JD.com, Inc., worth $13.35 million and amounting to a 6.89% slice of his overall portfolio.

On December 7, Macquarie analyst Ellie Jiang resumed coverage of JD.com, Inc., setting an ‘Outperform’ rating and a $112 price target. Jiang believes the company will continue its growth momentum heading into 2022 and shows significant strength in its supply chain and logistics infrastructure.

Investment firm Argosy Investors mentioned JD.com, Inc. in its investor letter for Q3 2021. 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.”

2. Sea Limited (NYSE:SE)

Old Well Partners’ Stake Value: $20.62 million

Percentage of Old Well Partners’ 13F Portfolio: 10.64%

Number of Hedge Fund Holders: 117

With roughly 65,000 shares worth $20.62 million, Sea Limited (NYSE:SE) is the second-largest holding of Campbell Wilson’s Old Well Partners. The company offers online gaming services, along with e-commerce, and digital financial services. It is headquartered in Singapore. Investors were seen loading up on Sea Limited stock at the close of the third quarter, with 117 hedge funds reporting bullish bets on the company shares. In comparison, 104 hedge funds were long Sea Limited in the previous quarter.

On January 27, Goldman Sachs analyst Miang Chuen Koh reiterated a ‘Buy’ rating on Sea Limited stock, removing it from the firm’s Conviction List, and lowering the price target to $300 from $460. The analyst sees the company’s fundamentals in the mid-to-long term as strong but holds that near-term visibility remains a challenge.

“Over the last year, we have sought to improve the up capture of the portfolio by expanding exposure to the select bucket of companies growing revenues and earnings at meaningfully above-average rates and targeting large total addressable markets. Newer names in the select bucket like Sea Limited have been strong contributors to relative performance over this period. We believe that owning a broader group of IT and Internet companies with different drivers to the businesses helps manage some of the risk in this relatively more expensive subsector.”

1. MercadoLibre, Inc. (NASDAQ:MELI)

Old Well Partners’ Stake Value: $21.73 million

Percentage of Old Well Partners’ 13F Portfolio: 11.2%

Number of Hedge Fund Holders: 68

MercadoLibre, Inc. (NASDAQ:MELI) is the largest holding of Campbell Wilson’s Old Well Partners, with approximately 13,000 shares worth $21.73 million, which represent 11.2% of the fund’s overall holdings. The company offers the largest e-commerce ecosystem in Latin America and operates in 18 countries around the continent.

In November, Trevor Young of research firm Barclays kept an ‘Overweight’ rating on MercadoLibre, Inc. shares, and raised the price target to $2,200 from $2,100.

68 hedge funds were long MercadoLibre, Inc. in Q3 2021, holding positions worth $4.37 billion. In comparison, 74 hedge funds held positions worth $4.02 billion in the firm a quarter ago.

Investment firm LRT Capital Management talked about MercadoLibre, Inc. in its Q3 2021 investor letter. Here’s what the fund said:

“Mercadolibre, Inc. (MELI) – the LatAm eCommerce, shipping, and payments company, is now trading at a very attractive valuation – its lowest P/S ratio ever. The concerns here have to do with the recession in Brazil and slowing economic growth throughout the region.”

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