Tech Gurus Keywise Capital Take Profit from Alibaba (BABA) Stake, Like Semiconductors, China

#3 YY Inc (ADR) (NASDAQ:YY)

– Shares Owned by Keywise Capital Management (as of September 30): 212,400

– Value of the Holding (as of September 30): $11.32 Million

YY Inc (ADR) (NASDAQ:YY) was another stock that made its debut in Keywise Capital Management’s equity portfolio during the third quarter. The karaoke-site firm lost a chunk of its market cap in the second quarter after reports emerged that a consortium of investors, which included Xiaomi founder Lei Jun, had pulled out their $2.5 billion takeover bid for the company. On June 15, the company announced that its board has authorized a $200 million buyback program for the next 12 months that will cover shares and convertible notes that are due in 2019. At the end of last month, analysts at HSBC initiated coverage on the stock with a ‘Buy’ rating and $61 price target, which suggests potential upside of 38.8%.

#2 Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM)

– Shares Owned by Keywise Capital Management (as of September 30): 2.31 Million

– Value of the Holding (as of September 30): $70.56 Million

Moving on, Keywise Capital Management more than doubled its stake in Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) during the third quarter, which pushed the company to the second spot in the fund’s portfolio at the end of September, up from the third spot at the end of June. In the last five years, shares of the semiconductor giant have appreciated by 123% and they are currently trading up by 26.81% year-to-date. Most analysts who track the stock expect this bull run to continue on the back of record sales of the recently launched iPhone 7 and Apple’s decision to design its own chips for the new Macs, which will be manufactured by Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM). The rally in the stock price aside, several analysts also consider Taiwan Semiconductor to be one of the best stocks for dividend investors, as the stock has one of the highest forward yields in the semiconductor industry, at 3.26%.

#1 NVIDIA Corporation (NASDAQ:NVDA)

– Shares Owned by Keywise Capital Management (as of September 30): 1.17 Million

– Value of the Holding (as of September 30): $80.51 Million

With Keywise Capital Management upping its stake in the company by 3% and NVIDIA Corporation (NASDAQ:NVDA)’s stock appreciating by over 40% during the third quarter, the visual computing company remained the fund’s top stock pick at the end of September. NVIDIA Corporation (NASDAQ:NVDA) has been one of the best performing large-cap stocks this year, having registered a gain of 153.75% so far in 2016. While this terrific upward move has been great for the existing shareholders of the company, it has pushed the stock’s annual dividend yield considerably lower, from 1.7% at the start of the year to 0.67% currently. On November 14, Needham & Company’s analyst Rajvindra Gill released a note in which he upgraded the stock to ‘Buy’ from ‘Hold’ and also raised his price target on it to $100 from $87.97. In his note, Mr. Gill mentioned that the firm’s upgrade is based on, “long-term secular trends: 1) incorporation of ADAS applications in automotive market (25MM+ cars by 2019) and where NVDA’s Drive PX2 supplies Level 3-5 autonomy (~$6B TAM); 2) proliferation of machine learning, AI and graphics virtualization in the data center; and 3) emergence of virtual reality devices in PC and gaming mkts driving higher graphics content.”

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