The disclosure of 13F quarterly report of US stock asset management giant continues.
Recently, the 13F report submitted by Himalaya capital to the US Securities and Exchange Commission (SEC) showed that its total position was US $2665 million (about RMB 16.9 billion) by the end of 2021, an increase of about 24% compared with the end of the third quarter of last year (US $148 million).
Different from the frequent position adjustment of some asset management giants in the fourth quarter, according to the currently disclosed information, Himalayan capital made only a few three position changes in the fourth quarter of last year: adding positions to meta and Bank of America, and clearing positions at the same time. In the same period, compared with the third quarter, the number of Himalayan capital holding companies in the fourth quarter decreased to 6.
Himalayan founder Li Lu has the same investment style and attitude as Munger and Buffett, that is, his positions are highly concentrated and he prefers bank stocks. In the fourth quarter of 2021, Bank of America is one of the only two position increase operations.
Clear the warehouse and spell more, and the positions are concise and concentrated
Different from the trend of peers who have adjusted positions for many times, such as Hillhouse and qiaoshui, according to the information submitted to the SEC, Himalayan capital only carried out three operations in the fourth quarter of last year, that is, adding positions to Bank of America and meta, clearing positions and selling more, while the position of the first heavy position stocks remained unchanged.
During the fourth quarter of last year, Li Lu was interested in micron
Technology) has no position, but it is still the largest heavy position stock of Himalayan capital. According to the 13F report, Himalayan capital holds a total of 11.4765 million shares, with a market value of US $106938 million, accounting for 40.12% of the total position of the institution, up from 37.92% in the previous quarter.
Micron technology rose about 31.37% in the same period.
Bank of America and meta are the second and third largest heavyweight stocks of Li Lu, respectively.
Himalayan 13F report shows that in the fourth quarter of last year, Himalayan capital increased its position in Bank of America by 2228000 shares, with a market value of US $648975.5 million, and its position increased to 18.03% accordingly. Due to Himalaya’s increasing holdings of meta at the same time, as of the fourth quarter of last year, the proportion of Bank of America’s total position in Himalayan capital decreased slightly to 24.36% from 24.42% in the third quarter.
Meta (Facebook) is another position increase of Himalayan capital besides bank of America.
From October to December 2021, Himalayan capital bought 303600 Facebook shares in total, and the market value of the shares rose to US $29471 million, and the position then climbed to 53.02%. In the same period, Facebook’s share of total Himalayan positions rose to 11.06%, and the figure was 9.05% in the third quarter of the same year.
In addition to the two overweight, clearance pinduoduo was the last operation of Himalayan capital in the fourth quarter of last year. The institution sold all 363100 shares it held in the last quarter, and its position decreased from 1.53% in the third quarter to 0%.
The position building of pinduoduo began in the fourth quarter of 2020. It is estimated that its average share price is above $100.
After selling all pinduoduo, the number of holding companies of Himalayan capital decreased from 7 in the third quarter of last year to 6 in the fourth quarter of the same year: micron technology, meta, Bank of America, Berkshire Hathaway, Google and apple. Except for micron technology, the shareholding of the latter three has not changed, and the market value of their shareholding is US $268 million, US $249 million and US $135 million respectively; Accounting for 10.07%, 9.33% and 5.06% of the total positions respectively.
The 13F quarterly report submitted by various institutions to the SEC shows the consistency and difference of investment Views: technology stocks continue to be favored, the attitude towards China concept stocks is differentiated, and pinduoduo has also received different hot and cold treatment.
In the fourth quarter of 2021, BlackRock steadily increased its positions in US technology stocks. The top five buying stocks are Microsoft, NVIDIA, Tesla, Qualcomm and Broadcom.
After reducing its holdings for three consecutive quarters, BlackRock increased its holdings of 3.44 million shares in Alibaba and 430000 shares in pinduoduo, with a market value of $760 million and $1.184 billion respectively.
Among the top ten heavyweight stocks in qiaoshui, consumer stocks account for half. Qiaoshui maintained its preference for concept stocks in e-commerce and increased its holdings in pinduoduo, jd.com and Alibaba.
Buffett’s Berkshire Hathaway has yet to hold any zhonggai shares.
Prefer the value investment concept of banks
Li Lu was once taught by Munger and inherited the value investment insight of the latter and his old friend Buffett, that is, his preference for bank stocks and simple position adjustment.
At present, Buffett’s heavy position in the top ten stocks is still the largest, accounting for 54.89% of the market value of Berkshire, accounting for the top five stocks under Berkshire’s control. In addition to apple, its top five positions also include bank of America, American Express, Coca Cola and kraft Heinz.
In Li Lu’s position list, both apple and Bank of America are on the list, and the proportion is not small. In the fourth quarter of last year, neither Li Lu nor Buffett increased their holdings of apple.
According to the meta four seasons report, its revenue was $33.67 billion, higher than analysts’ previous estimate of $33.4 billion. Apple’s net profit in the same period was $34.630 billion (about 220.1 billion yuan), a year-on-year increase of 20%, higher than the market estimate of $30.954 billion.
According to the financial report disclosed by Bank of America in January, in the fourth quarter of 2021, the bank’s total revenue was US $22.1 billion, slightly lower than the market expectation of US $22.2 billion; The net profit was US $7.013 billion, a year-on-year increase of 28%. Brian Moynihan, chairman and CEO of Bank of America, said that in the fourth quarter, Bank of America increased $51 billion in loans and $100 billion in deposits, further consolidating its position as a leader in retail business. The company also achieved a record profit of $32 billion in 2021.
In addition to his preference for Bank of America, Li Lu previously bought Postal Savings Bank Of China Co.Ltd(601658) in the Hong Kong stock market, which is not favored by most views.
According to the data released by the Hong Kong stock exchange, on December 18, 2020, Li Lu bought 1.006 billion Postal Savings Bank Of China Co.Ltd(601658) Hong Kong shares at a price of HK $4.23 per share. Subsequently, on January 15 last year, 268 million shares were increased at the unit price of HK $5.35/share. After two times, the cumulative number of shares was 1.274 billion, and the total cost of holding positions was about HK $5.7 billion.
After that, due to the combination of performance and the recovery of Hong Kong stocks, Postal Savings Bank Of China Co.Ltd(601658) Hong Kong stocks hit a maximum of HK $6.82/share on February 14, 2021, a new high since listing. This means that the Himalayas is expected to earn a floating profit of about HK $2 billion.
The Fed raised interest rates for the first time in March, and any base point increase will drive changes in stock market sentiment.
Ray Sharma ong, investment director of Aberdeen’s multi asset solutions, said he would focus on value stocks (Europe, Japan, Australia and ASEAN) and global banking stocks, which are highly vulnerable to the increase in sovereign bond yields.
“After more mixed quarters (21st quarter), the bank’s core profit was 6% lower than the consensus expectation, mainly due to a 1% increase in expenditure and a 1% decrease in revenue.” Goldman Sachs said in its research report released in January that investors’ focus is shifting from focusing on the upward benefits of rising interest rates to a more balanced view, that is, taking into account the risks and offsets that may be brought by rising costs and further normalization of capital markets.
Goldman still believes that for banks, the situation from now on is quite constructive.
Goldman Sachs strategists pointed out that in the case of interest rate hikes and loan growth, the prospect of net investment yield seems to be very strong. “We continue to expect banking credit conditions to remain benign in 2022 and capital markets to normalize to a higher level than in 2019. At the same time, stock valuations now seem more reasonable.”
However, although Goldman Sachs’s basic forecast is that interest rates will begin to rise in 2022 and a strong economic recovery will drive loan growth. However, considering the potential for faster interest rate hikes, more loan growth, more cost savings and accelerated return on capital, Goldman Sachs believes that the improvement of the macro environment may lead to an increase of about 25% in its forecast earnings for the banking industry in 2022 or an increase of 400 basis points in the return on tangible common equity (rotces).
