Newspaper article International New York Times

Hedge Funds Sell Shares in Alibaba and Baidu ; as China's Markets Fell, Managers Shed Giants' Shares, Which Dropped

Newspaper article International New York Times

Hedge Funds Sell Shares in Alibaba and Baidu ; as China's Markets Fell, Managers Shed Giants' Shares, Which Dropped

Article excerpt

As China's stock market plummeted, large money managers sold substantial amounts of their stock in the two Chinese technology giants.

As China's stock market took a free fall earlier this summer, big money managers looked to sell shares of two of the largest Chinese tech companies listed in the United States -- Alibaba and Baidu -- during the second quarter.

Coatue Management sold 2.2 million shares of Baidu, China's biggest Internet search company --roughly 74 percent of its stake -- in the quarter that ended on June 30, according to a regulatory filing on Friday. In the same period, Tiger Global Management sold 6.6 million shares of Alibaba, almost its entire stake in the Chinese online shopping platform.

The shares of both Alibaba and Baidu are down sharply since the beginning of the second quarter. The two companies were once the darlings of a group of hedge funds known as the "tiger cubs," hedge fund managers seeded by the billionaire investor Julian Robertson, which include Coatue, founded by Philippe Laffont, and Tiger Global, founded by the investor Chase Coleman.

Other so-called tiger cubs sold some of their shares in Baidu and Alibaba as well, including Viking Global Investors. The hedge fund, led by O. Andreas Halvorsen, who once worked for Mr. Robertson, sold 1.1 million shares in Baidu and also 902,981 shares of Alibaba.

The hedge funds disclosed that they had sold their shares in Baidu and Alibaba in regulatory filings that are submitted four times a year to the Securities and Exchange Commission. The quarterly reports, known as 13F filings, offer investors a chance to see which stocks and sectors traders were betting on when the quarter ended, roughly 45 days ago.

But the filings offer an imperfect window into the holdings of money managers because they are inherently backward-looking. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.