Kylin Management’s Top Q2 Stock Picks Dominated by China

#3 JD.Com Inc(ADR) (NASDAQ:JD)

 – Shares Owned by Kylin Management (as of March 31): 3.7 million

 – Value of Holding (as of March 31): $74 million

Amid a 17.86% drop in JD.Com Inc(ADR) (NASDAQ:JD)’s stock during the first quarter, Kylin Management inched up its stake in the company by 1%. Shares of the marketplace giant ended 2015 with gains of almost 30% but have given up all of those gains and more this year. A lot of the decline the stock has suffered recently came after a report published on SumZero in June called the company “wildly overpriced”. On June 20, Wal-Mart Stores, Inc. (NYSE:WMT) sold its Chinese online grocery store, Yihaodian, to JD.Com Inc(ADR) (NASDAQ:JD) for a 5% stake in the latter. Notable investors that initiated a stake in JD.Com Inc during the first quarter included billionaire Andreas Halvorsen‘s Viking Global, which purchased 15.08 million shares of the company.

#2 Interactive Brokers Group, Inc. (NASDAQ:IBKR)

 – Shares Owned by Kylin Management (as of March 31): 5.62 million

 – Value of Holding (as of March 31): $221 million

Moving on, Kylin Management increased its stake in Interactive Brokers Group, Inc. (NASDAQ:IBKR) by 9% during the first quarter. Interactive Brokers Group, Inc. (NASDAQ:IBKR)’s stock has been trading in the $35-to-$40 range for the past three months and most analysts citing the high valuation of the company expect the stock to continue to remain range-bound in the near future. Last month, Buckingham Research analyst Chris Allen released a note in which he initiated coverage on Interactive Brokers’ stock with a ‘Neutral’ rating and $38 price target. In his note, Mr. Allen applauded the company’s international connectivity infrastructure, and low costs, but noted that the stock is fully priced at the levels it is currently trading at. Another hedge fund that increased its stake in the company during the first quarter was Quincy Lee’s Ancient Art, which held 3.48 million shares of the company at the end of March.

#1 Vipshop Holdings Ltd – ADR (NYSE:VIPS)

 – Shares Owned by Kylin Management (as of March 31): 19.03 million

 – Value of Holding (as of March 31): $245.05 million

Vipshop Holdings Ltd – ADR (NYSE:VIPS) continued to remain the top stock pick of Kylin Management as of the end of the first quarter. Though the fund inched up its stake in the company by 1% during the quarter, the value of its Vipshop Holdings position fell by $44.05 million, owing to the 15.6% decline in the stock during that time. The online discount retailer has lost over 60% of its market capitalization since last April and its stock is currently trading down by 26.14% year-to-date. Currently, the 21 leading analysts on the Street who cover Vipshop Holdings Ltd – ADR (NYSE:VIPS) have an average rating of ‘Overweight’ and an average price target of $14.63 on it, which represents potential upside of 30.4%. Kenneth Tropin’s Graham Capital Management reduced its stake in Vipshop Holdings by 21% to 30.25 million shares during the first quarter, but continued to remain the largest shareholder of the company among the funds in our database.

Disclosure: None