Should You Now Take Some Profits in Your Tencent (TME) Position?

Polen Capital, an investment management firm, published its “Polen Global Growth” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly gross return of 7.08% was delivered by the fund for the fourth quarter of 2021, versus the MSCI All-Country World Index (the “Index”)’s return of 6.67% for the same period.  Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Polen Global Growth, in its Q4 2021 investor letter, mentioned Tencent Music Entertainment Group (NYSE: TME) and discussed its stance on the firm. Tencent Music Entertainment Group is a Shenzhen, China-based music company with a $10.4 billion market capitalization. TME delivered a -9.93% return since the beginning of the year, while its 12-month returns are down by -76.84%. The stock closed at $6.17 per share on February 16, 2022.

Here is what Polen Global Growth has to say about Tencent Music Entertainment Group in its Q4 2021 investor letter:

“In terms of managing risk in 2021, the sale of our positions in Alibaba and Tencent are probably the best examples. We owned both companies since the inception of the Global Growth strategy at the beginning of 2015, having an overweight in China as a result. We earned a greater than 20% compound rate of return on Tencent during the same period. We won’t discuss it in detail here since we provided our rationale for selling both positions in our 3Q 2021 Commentary, but in short: when the facts change or new risks emerge, we adjust.”

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Our calculations show that Tencent Music Entertainment Group (NYSE: TME) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TME was in 24 hedge fund portfolios at the end of the third quarter of 2021, compared to 35 funds in the previous quarter. Tencent Music Entertainment Group (NYSE: TME) delivered a -23.45% return in the past 3 months.

In October 2021, we also shared another hedge fund’s views on TME in another article. You can find other 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.