According to the US Securities and Exchange Commission (SEC), HHLR Advisors, the investment management firm of Hillhouse Capital focusing on secondary markets, has released information on its US stock portfolios in the fourth quarter of 2021. During the period, Hillhouse Capital continued to attach importance to technology firms, and changed its investments in a range of China Concepts Stocks.
According to the 13F file submitted by HHLR to the SEC, HHLR gradually adjusted the positions of China Concepts Stocks that had seen large price increases previously, and liquidated its holdings in internet giant Alibaba Group and video sharing platform Bilibili. HHLR also reduced its holdings in other internet companies, including Pinduoduo by 92% and BOSS Zhipin. In the fourth quarter, HHLR kept the positions of e-commerce platform JD.com and video sharing platform iQiyi unchanged.
As of the end of the fourth quarter, HHLR held 76 stocks in the US stock market, among which the top ten were BeiGene, On Holding, Legend Biotech, Salesforce, I-MAB, JD.com, SEA, DoorDash, iQiyi and Li Auto – six of these were China Concepts Stocks.
In the fourth quarter, HHLR added or increased its holdings in a total of 12 firms, covering a number of leading biotechnology and new energy vehicle companies. It bought significant number of stocks in XPeng Motors and Li Auto, with an increase of 455% and 363%, respectively. Li Auto ranked among the top ten stocks held by HHLR in US stocks for the first time. However, HHLR’s posture towards NIO Inc., one of the three major new carmakers in China, was quite different, reducing its shares by nearly 60% in the quarter.
In the field of science and technology, HHLR continued to increase its holdings in SEA, a Tencent-like company in Southeast Asia, and Salesforce in the fourth quarter. SEA also entered the top ten stocks held by HHLR in US markets. Meanwhile, HHLR kept considering Biotechnology as a key direction for future development. Looking at the top ten stocks, BeiGene and I-MAB, which have long been heavy positions of HHLR, continue to rank top among the list.
In addition, Yatsen Holding, the parent company of makeup brand Perfect Diary, which has received investment from HHLR in the primary market, has 40,451,713 shares held by HHLR in the fourth quarter, a significant increase of more than 40 million shares compared with that of the third quarter. This usually happens in the 13F report when the ordinary shares listed in the primary market are converted into American depositary share (ADS), which can be circulated in the secondary market.