Asian Fund Q2 significantly increased its position Alibaba
The positions of some of Asia's biggest funds in Alibaba and Sea (SEA.US) more than doubled in the second quarter of this year after a year-long slump. During this period, the number of Alibaba shares held by Asia-focused funds increased by 311 per cent, while the number of shares held by Sea increased by 110 per cent. This is based on an analysis of 13F documents from 15 Asian asset managers, including hedge fund Aspex Management (HK) Ltd. Companies such as Oasis Management Co., hold at least $200m in assets at the end of the quarter.
Volatile markets test Asian hedge funds as regulatory crackdowns and geopolitical tensions scare investors. The following chart outlines their quarter-end holdings: as of the end of June, ecommerce, express, solar companies and electric carmakers made up the fund's top 20 holdings by market capitalisation. JD.com (JD.US) tops the list by market capitalization, although Alibaba's total position (as measured by the number of shares) increased the most from the previous quarter. However, there are still some funds that are sceptical about the prospects of e-commerce companies, leading to a reduction in investment in Alibaba.
Meanwhile, semiconductor trading is losing its luster, with some Asian funds selling AMD (AMD.US), NVDA.US and TSM.US, the second-largest US computer chipmaker. The semiconductor industry could face its worst recession in a decade or more because of falling demand for consumer electronics. Secondly, catering and express delivery, semiconductors, e-commerce, electric vehicles and online brokerage transactions are the most intensive. Nvidia and TSMC lost the largest number of funds in the three months to June, joining Google's parent companies Alphabet Inc (GOOG.US) and MSFT.US.
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