Top 5 Stock Picks of Billionaire Daniel Sundheim

2. JD.com, Inc. (NASDAQ:JD)

D1 Capital Partners’ Stake Value: $1,285,125,000

Percentage of D1 Capital Partners’ 13F Portfolio: 7.18%

Number of Hedge Fund Holders: 66

JD.com, Inc. (NASDAQ:JD), a Chinese e-commerce retailer, is one of billionaire Daniel Sundheim’s top stock picks from the third quarter. Sundheim’s D1 Capital Partners owns 17.78 million shares in JD.com, Inc. (NASDAQ:JD), worth $1.28 billion, representing 7.18% of the firm’s Q3 stock portfolio. 

JD.com, Inc. (NASDAQ:JD), on November 18, posted Q3 earnings. The EPS totaled $0.49, beating estimates by $0.18. JD.com, Inc. (NASDAQ:JD) amassed a $34.25 billion revenue during the third quarter, which was up 29.44% from the prior-year quarter, outperforming estimates by $709.63 million. 

Following the solid Q3 results, Benchmark analyst Fawne Jiang raised the price target on JD.com, Inc. (NASDAQ:JD) on November 19 to $117 from $102, and kept a Buy rating on the shares. The analyst stated that JD.com, Inc. (NASDAQ:JD) outperformed expectations in the third quarter despite supply chain bottlenecks and macro headwinds. 

As of Q3 2021, 66 hedge funds were long JD.com, Inc. (NASDAQ:JD), down from 76 funds in the preceding quarter, as per Insider Monkey’s records. Tiger Global Management LLC is the leading JD.com, Inc. (NASDAQ:JD) stakeholder, with over 51 million shares in the company, valued at $3.6 billion. 

Here is what Argosy Investors has to say about JD.com, Inc. (NASDAQ:JD)  in its Q3 2021 investor letter:

“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”