Chinese hedge funds have significantly reduced their investments in U.S. hyperscalers and AI-related companies during the second quarter of this year, opting instead to restructure their portfolios towards memory semiconductor firms.
According to a report by the South China Morning Post on August 17, Perseverance Asset Management International disclosed in a recent 13F filing with the U.S. Securities and Exchange Commission that it sold 210,000 shares, or 72.4%, of its 290,000 shares in Nvidia between April and June.
In contrast, the firm increased its holdings in U.S. memory manufacturer Micron by purchasing an additional 25,442 shares, raising its total stake fourfold compared to the first quarter. It also acquired 10,521 shares of SanDisk, expanding its investment by 192%. Additionally, the firm repurchased 3,399 shares of Alibaba Group's U.S.-listed stock, while completely liquidating its positions in Chinese electric vehicle manufacturers Nio and Xpeng, which have been struggling with profitability due to price wars.
Other top Chinese hedge funds have shown similar trends. Greenwoods Asset Management sold all its shares in Nvidia, Meta, and Amazon during the second quarter, and reduced its stake in Alphabet by 39%. Instead, it purchased 7,070 shares of ASML, a Dutch semiconductor equipment manufacturer.
Oriental Harbor Investment's Hong Kong branch also sold all its Meta shares and reduced its investments in Amazon and Nvidia by 67% and 16%, respectively. Conversely, it acquired 77,276 shares of SanDisk and doubled its stake in Micron, reinforcing its commitment to memory semiconductors.
The South China Morning Post noted that this restructuring of holdings indicates that top Chinese hedge fund managers are adjusting their portfolios in response to the rapidly changing global AI investment narrative, becoming more selective in their purchases and more discerning in their stock choices.
* This article has been translated by AI.
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