In this article, we will be taking a look at the top 5 stocks to buy now according to Ariose Capital. To skip our detailed analysis of Ariose Capital’s profile, investment strategy, and previous quarter 13F holdings, you can go directly to see the Top 2 Stocks to Buy Now According to Ariose Capital.
Ariose Capital is an investment company based in Hong Kong and was founded in 2010 by Yi Xin. The firm manages a private investment fund, Ariose China Growth Fund, with total gross assets valued at $178 million, according to Ariose Capital’s SEC filing. Ariose Capital’s 13F portfolio comprised of shares of 5 companies based in China, with total portfolio value of $93.5 million, as of June 30, 2022.
An analysis of the 13F holdings of Ariose Capital since the start of 2016 shows that the investment manager typically holds up to 10 stocks in its portfolio with a typical investment horizon of 6 months or less. The hedge fund revamped its portfolio in Q2 2022 as well and dumped 4 of the 5 stocks it held in the previous quarter. The stocks offloaded by the company include Chinese ecommerce giants Alibaba Group Holding Limited (NYSE:BABA) and JD.Com, Inc. (NASDAQ:JD), online streaming company Netflix, Inc. (NASDAQ:NFLX), and CRISPR Therapeutics AG (NASDAQ:CRSP).
Alibaba Group Holding Limited (NYSE:BABA) was facing potential delisting from the US stock exchange as its audit paperwork couldn’t be inspected by the Public Company Accounting Oversight Board. The SEC finally announced in August that it has struck a deal with Chinese securities regulators and the country’s ministry of finance.
Earlier in August, JD.Com, Inc. (NASDAQ:JD) released its financial results for the latest quarter, managing to beat EPS estimates by $0.19 and revenue by nearly $0.6 billion. Following the earnings release, Benchmark analyst Fawne Jiang raised the price target on JD.com shares to $109 from $106, maintaining a ‘Buy’ rating. CRISPR Therapeutics AG (NASDAQ:CRSP) is also seeing positive developments with Stifel analyst Benjamin Burnett raising the target price on its shares to $69 from $55 in August.
Image by Sergei Tokmakov Terms.Law from Pixabay
Methodology
We have picked the top 5 stocks from Ariose Capital’s latest 13F holdings for Q2 2022.
5. TAL Education Group (NYSE:TAL)
Ariose Capital’s Stake Value: $347,000
Percentage of Ariose Capital’s 13F Portfolio: 0.37%
Number of Hedge Fund Holders: 17
Based in Beijing, China, TAL Education Group (NYSE:TAL) is a leading education and technology company operating in China. Formerly known as Xueersi, TAL Education Group (NYSE:TAL) was formed in 2003 and has created an educational ecosystem that encompasses tools, platforms, and contents to meet the needs of learners in different age groups. It employs 45,000 personnel globally and covers 331 prefecture-level cities in China and 20-plus countries and regions overseas, with 990 teaching centers in 102 cities.
Yi Xin’s Ariose Capital owns 71,293 shares of TAL Education Group (NYSE:TAL), making up 0.37% of the investment manger’s 13F portfolio. TAL Education Group (NYSE:TAL) is among the 4 stocks that were added to Ariose Capital’s portfolio in Q2 2022.
As of Q2 2022, 17 hedge funds held shares in TAL Education Group (NYSE:TAL), valued at $116 million. Tiger Pacific Capital was the largest shareholder on record with ownership of 9,256,885 shares valued at $45 million.
4. New Oriental Education & Technology Group Inc. (NYSE:EDU)
Ariose Capital’s Stake Value: $6,395,000
Percentage of Ariose Capital’s 13F Portfolio: 6.83%
Number of Hedge Fund Holders: 22
New Oriental Education & Technology Group Inc. (NYSE:EDU) is a leading private educational services provider in China. It offers programs, services and products including language training, overseas and domestic test preparation courses, educational content, and software as well as online education. It had a network of 744 learning centers including 107 schools, as of May 31, 2022.
Similar to three other additions to Ariose Capital’s 13F Portfolio, New Oriental Education & Technology Group Inc. (NYSE:EDU) was added in Q2 2022. Ariose Capital owns 314,104 shares of the educational services provider, accounting for 6.83% of its 13F portfolio.
As of Q2 2022, 22 of the 895 hedge funds tracked by Inside Monkey owned shares of New Oriental Education & Technology Group Inc. (NYSE:EDU), valued at $721 million. Its largest shareholder was Baupost Group with ownership of 8,000,000 shares valued at $163 million.
3. NetEase, Inc. (NASDAQ:NTES)
Ariose Capital’s Stake Value: $ $8,426,000
Percentage of Ariose Capital’s 13F Portfolio: 9%
Number of Hedge Fund Holders: 26
Based in Hangzhou, China, NetEase, Inc. (NASDAQ:NTES) is a leading internet technology company. It develops and operates mobile and PC games and partners with other leading game developers such as Microsoft and Blizzard to operate their games in China. The portfolio of NetEase, Inc. (NASDAQ:NTES) also includes intelligent learning company, Youdao, Inc. (NYSE:DAO), online music content community, Cloud Village, and a private label ecommerce platform, Yanxuan.
NetEase, Inc. (NASDAQ:NTES) is the only stock that was also a part of Ariose Capital’s 13F portfolio during the last quarter. The investment manager owns 90,251 shares, making up 9% of the 13F portfolio. Its stake increased by 118% in Q2 2022, compared to the previous quarter.
Earlier this month in August, NetEase, Inc. (NASDAQ:NTES) released its financial results for Q2 2022. Its net revenues increased by 13% y-o-y to $3.5 billion, while its net income increased by 32% y-o-y to $697 million, for three months ended June 30, 2022. The EPS was recorded at $1.21, beating the consensus by $0.17. NetEase declared a dividend of $0.072 per share for the quarter. Following the earnings release, Citi analyst Alicia Yap raised the firm’s price target to $140 from $132.
As of Q2 2022, 26 of the 895 hedge funds tracked by Insider Monkey have positions in NetEase, Inc. (NASDAQ:NTES), worth $998 million. Its largest shareholder was Orbis Investment Management with ownership of 3,668,611 shares valued at $343 million.
Click to continue reading and see Top 2 Stock Picks of Yi Xin’s Ariose Capital.
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Disclosure. None. Top 5 Stock Picks of Yi Xin’s Ariose Capital is originally published on Insider Monkey.
