Davis Funds, an investment management firm, published its “Davis Global Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. After outperforming for the previous five-, 10- and 15-year periods, Davis Global Fund underperformed in 2021. As a result, the earnings of Davis Global Fund portfolio companies have grown at 23.2% compared to the index at 16.8%, yet are selling at a significant discount, 9.1x vs. 18.9x. For the year 2021, Davis Global Fund returned −5.09%, compared with an 18.54% return for the MSCI ACWI (All Country World Index), an underperformance of 23.63%. Entering the year, Davis Global Fund had generated solid outperformance relative to the MSCI ACWI (All Country World Index) over five-, 10- and 15-year periods. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Davis Global Fund, in its Q4 2021 investor letter, mentioned DiDi Global Inc. (NYSE:DIDI) and discussed its stance on the firm. Founded in 2012, DiDi Global Inc. (NYSE:DIDI) is a Beijing, China-based mobility technology platform with a $12.9 billion market capitalization, and is currently spearheaded by its CEO, Will Wei Cheng. DiDi Global Inc. (NYSE:DIDI) delivered a -40.14% and it closed at $2.55 per share on March 16, 2022.
Here is what Davis Global Fund has to say about DiDi Global Inc. (NYSE:DIDI) in its Q4 2021 investor letter:
“The second regulatory action took place shortly after the initial public offering of Didi Global, China’s ride-sharing leader, on the New York Stock Exchange (NYSE). In early July, the Cybersecurity Administration of China (CAC), implementing provisions from the new Data Security Law issued on June 10, announced that Didi will undergo a cybersecurity review, and further downloading of its app was suspended. Didi’s data privacy and collection policies, as well as data security considerations stemming from the company’s U.S. listing, were the focus of the review. On December 3, Didi announced that it planned to delist from the NYSE and relist in Hong Kong. The market understandably dislikes uncertainty, and it will take several months for the relisting process to be finalized. Over the long run, however, we believe a Hong Kong listing will resolve the CAC’s concerns around national data security, and it will provide a globally recognized primary listing venue, as it already does for other large Chinese internet companies such as Tencent and Meituan. Over time, the value of Didi, like any other company, will be determined by its business prospects and profitability rather than the location of its primary exchange listing.”
Our calculations show that DiDi Global Inc. (NYSE:DIDI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. DiDi Global Inc. (NYSE:DIDI) was in 21 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 15 funds in the previous quarter. DiDi Global Inc. (NYSE:DIDI) delivered a -59.78% return in the past 3 months.
In February 2022, we published an article that includes DiDi Global Inc. (NYSE:DIDI) in the 10 Tech Stocks To Buy According To Billionaire George Soros. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
