David Tepper Alibaba Investment Focus Shifts to China

David Tepper, a renowned hedge fund manager, has made significant investments in Alibaba, one of China's largest e-commerce companies.

He first invested in Alibaba in 2014, when the company's market value was around $170 billion.

Tepper's investment focus has shifted from Alibaba's international business to its China-based operations, where the company has a stronger presence.

David Tepper, a hedge fund manager, has made significant investments in Alibaba, a Chinese e-commerce giant. He has a long-term approach to investing.

Tepper's firm, Appaloosa Management, has a history of taking a contrarian view on investments, often buying into companies that are undervalued by the market.

In the case of Alibaba, Tepper saw an opportunity to invest in a company with a strong track record of growth and a dominant position in the Chinese e-commerce market.

By investing in Alibaba, Tepper has demonstrated his ability to identify and capitalize on emerging trends and opportunities in the market.

Alibaba's strong financials and growth prospects have made it an attractive investment for Tepper and other investors.

David Tepper's Appaloosa Management trimmed its Alibaba stake by 5% in the third quarter, but the Chinese e-commerce giant remains the hedge fund's largest holding, accounting for 16% of its $6.7 billion equity portfolio.

Tepper more than doubled its stake in PDD Holdings and increased positions in JD.com Inc. and KE Holdings Inc. This suggests a more selective approach to investing in Chinese stocks.

China's CSI 300 Index has remained largely range-bound since surging 35% during a frenetic 10 trading sessions in late September and early October.

Investor excitement over the prospect of more government support for the Chinese economy has faded amid disappointment over the scale of fiscal stimulus.

Burry's Scion Asset Management boosted its holdings of Alibaba by almost 30% in the three months through September, but also bought put options with the notional value equivalent to 84% of its investment in the Chinese tech behemoth.

Burry's firm used the same tactics for two other Chinese investments, Baidu Inc. and JD.com Inc., in a sign of caution for his China holdings.

Valuations on Chinese stocks remain low, but investors are turning increasingly selective following an underwhelming earnings season.

David Tepper's Appaloosa Management has a significant portfolio of Chinese stocks, with Alibaba being its largest holding. This is a notable shift from the previous quarter when Alibaba was only the fifth-largest holding.

In the first quarter of 2024, Tepper's fund bought an additional 6.9 million shares of Alibaba, increasing its stake to 12.05% of the portfolio. This makes Alibaba the number-one holding in the Appaloosa fund.

The iShares China Large-Cap ETF (NYSE:FXI) is another top buy for the fund, accounting for 2.27% of the portfolio. Tepper's fund bought 6.375 million shares of FXI in the first quarter of 2024.

PDD Holdings– ADR (NASDAQ:PDD) is also a significant holding, with Tepper's fund buying 1.325 million shares in the first quarter of 2024. This has increased the stock's weight in the portfolio to 3.61%.

Other Chinese stocks in Tepper's portfolio include BaiduInc (NASDAQ:BIDU), JD.com (NASDAQ:JD), and the KraneShares CSI China Internet ETF (NYSE:KWEB). These stocks command 2.81%, 1.48%, and 1.35% of the fund's portfolio, respectively.

Tepper has also added Adobe Systems, Inc. (NASDAQ:ADBE) and Oracle Corp. (NASDAQ:ORCL) to his portfolio, which were among his top buys for the quarter.