In this article, we discuss the 5 stocks that Campbell Wilson’s Old Well Partners is buying. If you want to read our detailed analysis of Wilson’s history, investment philosophy, and hedge fund performance, go directly to Campbell Wilson’s Old Well Partners Is Buying These 10 Stocks.
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. (NYSE:ZTO) 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. (NYSE:ZTO) 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. (NASDAQ:BGNE) 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. (NASDAQ:BGNE) 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. (NASDAQ:JD) 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. (NASDAQ:JD), 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. (NASDAQ:JD), 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. (NASDAQ:JD) 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 (NYSE:SE) 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 (NYSE:SE) in the previous quarter.
On January 27, Goldman Sachs analyst Miang Chuen Koh reiterated a ‘Buy’ rating on Sea Limited (NYSE:SE) 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. (NASDAQ:MELI) shares, and raised the price target to $2,200 from $2,100.
68 hedge funds were long MercadoLibre, Inc. (NASDAQ:MELI) 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. (NASDAQ:MELI) 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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