After a series of sharp falls in share prices, Munger, an investment master, substantially reduced his holdings in Alibaba!
On April 11, Munger’s previously chairman, daily journal Corp, submitted the latest 13F position to the securities and Exchange Commission (SEC). Daily journal sold 302060 Alibaba American Depositary Receipts (ADRs) in the first quarter of this year, reducing its holdings from 602000 to 300000 and halving Alibaba’s investment position.
As Munger bought Alibaba ADR at a high level in the first quarter of last year, and then increased his position sharply, the average cost of his position may be above $160, and the loss of this position reduction may exceed 40%.
In addition, a few days ago, qiaoshui all-weather China fund, a subsidiary of qiaoshui, the world’s largest hedge fund, also disclosed the latest data. The total size of the fund was about US $6.154 billion (about 39.4 billion yuan), a sharp increase over the fourth quarter of last year, that is, qiaoshui continued to increase its Chinese investment.
The investment of qiaoshui (China), a private placement institution registered in China, has developed rapidly, the management scale has exceeded 10 billion yuan, and the performance this year is even better.
Munger significantly reduced his holdings in Alibaba and cut his position in half
On April 11, daily journal announced its latest position. By the end of March, daily journal Corp held 300000 Alibaba ADR shares, a decrease of 302000 compared with 602000 at the end of last year.
Munger bought Alibaba for the first time in the first quarter of 2021, holding 165300 shares of Alibaba ADR. In the first quarter of last year, Alibaba’s share price was above $220, and then Alibaba’s share price went all the way down. Daily journal added positions against the trend in the third and fourth quarters of 2021, adding about 136700 shares and 300000 shares respectively.
At the end of the fourth quarter of 2021, Munger held 602000 Alibaba ADRs. The average cost of its position may be above $160, with a total investment of nearly $100 million. This position reduction loss may exceed 40%.
It is worth noting that Munger has served as the chairman of daily journal since 1977. On March 28 this year, 98 year old Munger resigned as chairman of daily journal.
At present, the daily journal has a management fund of US $212 million and holds a total of five stocks, including Bank of America, Wells Fargo, Alibaba, United Bank of America and POSCO steel. The other four stocks were purchased before 2013. Among them, it holds 2.3 million shares of Bank of America and 1.6 million shares of Wells Fargo. Other holdings remained unchanged in the first quarter.
Alibaba purchased in the first quarter of 2021 can be said to be Munger’s last company and last investment decision in the daily journal.
Earlier, Munger said at the annual meeting of the daily journal that holding securities will face risks. Munger believes that Alibaba is a reasonable investment. At least for now, buying Alibaba shares is not as risky as it seems.
However, Munger also said that for Alibaba, Alibaba’s moat is not as deep as apple and alphabet. Although Alibaba is a large-scale Internet retailer, the competition on the Internet will become more and more fierce.
As of the closing on April 11, Alibaba’s share price was $101.55, with a market value of $272916 billion, down two-thirds from its highest level.
Qiaoshui continues to add weight to China, and the performance of private placement products in China is unique
different from Munger’s reduction, Qiao Shui founder Dalio continues to overweight Chinese assets
According to the data of the Securities Regulatory Commission (SEC), the qiaoshui all-weather China Fund under qiaoshui, the world’s largest hedge fund, revealed on March 30 that the total size of the fund was US $6.154 billion, up from US $5.44 billion at the end of the previous quarter, of which US investors accounted for about 48%.
In addition, qiaoshui (China) investment management company, a private equity institution registered in China, has developed rapidly, the management scale has exceeded the 10 billion yuan mark, and its performance this year is unique.
According to the data of China Resources trust, the net value of qiaoshui creative preferred series products reached a new high, with an absolute return of 6% in four months after the warehouse was established. Calculated by 200 thousand shares, it has made a floating profit of 120000.
it is worth noting that qiaoshui fund started to build its position at the end of last year. During this period, the market performance was poor, but qiaoshui did a large asset allocation through stocks, bonds and commodity futures, effectively avoided unilateral market risks, seized the rotating market and made an annualized return of nearly 20% under the market of mourning
As of March 24, the net value of the product increased by 4.58% during the year, significantly outperforming Chinese hedge fund peers. Previously, qiaoshui said in the roadshow that the difference between its alpha and most Chinese managers was not captured at the level of stock selection or industry. It was more about looking for the inflection point of the market. For example, when the stock market performed poorly, it also had the opportunity to create good returns.
As a world-famous macro strategy of private placement, in the underlying investment strategy of qiaoshui, the correlation with CSI 300, CSI 500 and gem index is only 0.5, 0.42 and 0.5, the correlation with China bond index and corporate bond index is 0.37 and 0.35 respectively, the correlation with other private placement managers in China is generally lower than 0.5, and the correlation with public funds is also about 0.5.
Perhaps it is from the excellent allocation strategy of stocks, commodities and bonds that qiaoshui’s private placement products still outperform the market after experiencing sharp market fluctuations.
In addition, qiaoshui’s performance in overseas markets is also quite bright. Bridgewater pure alpha fund, the flagship product of bridge jellyfish company, had a revenue of 16.34% in the first quarter of this year, and its net value increased by 9.23% in a single month in March.
Karen kaniol Tabor, CO chief investment officer of Bridgewater fund for sustainable development, said that the huge supply shock has made us live in the highest inflation in 40 years. Demand in each region exceeds supply, especially in commodities. Oil prices are at least as tight as in 2011, which may be more tense than in 2011, and very large price fluctuations can be obtained without interference. “China is one of the few truly independent economies in the world – with a large enough monetary / fiscal credit system, more self-sufficient, and assets that look different and move at its own pace in a way that no one else can.”
