Ray Dalio’s Top 5 China Stocks

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1. PDD Holdings Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders: 62

Bridgewater Associates’ Stake Value: $162,607,932

PDD Holdings Inc. (NASDAQ:PDD) primarily operates Pinduoduo, an e-commerce platform that provides a wide range of products across multiple categories. PDD Holdings Inc. (NASDAQ:PDD) is the largest China stock in Ray Dalio’s 13F portfolio. In the first quarter of 2023, Dalio owned 2.14 million shares of PDD Holdings Inc. (NASDAQ:PDD) worth $162.60 million, representing 0.99% of the total 13F securities. 

On May 26, PDD Holdings Inc. (NASDAQ:PDD) reported a Q1 non-GAAP EPADS of $1.01 and a revenue of $5.48 billion, outperforming Wall Street estimates by $0.38 and $920 million, respectively. 

According to Insider Monkey’s first quarter database, 62 hedge funds were bullish on PDD Holdings Inc. (NASDAQ:PDD), compared to 57 funds in the earlier quarter. Lei Zhang’s Hillhouse Capital Management is the largest stakeholder of the company, with 10.6 million shares worth $807.8 million. 

Here is what Tao Value has to say about PDD Holdings Inc. (NASDAQ:PDD) in its Q4 2021 investor letter:

“On the detracting side, one of our largest detractors includes Pinduoduo (ticker: PDD). Pinduoduo (PDD) reported the second consecutive GAAP profit quarter yet missed on the revenue due to nation-wide consumption weakness & scaled back Sales & Marketing efforts. Market disliked it and the stock price plunged on the earnings. In my opinion, the accounting profits proved the original thesis of using S&M to acquire users and using great shopping experience to keep them. After realizing the first growth curve, Pinduoduo now shifted its focus & investment to agriculture. It is still very early, but the reduced size due to price drop warrants a position to watch and continue to grow with such a team with a strong culture.”

Follow Pinduoduo Inc. (NASDAQ:PDD)

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