Greg Alexander Conifer Asset Management (Buffett tipped prodigy?) Dumps 100% of BABA holding acquired at much higher levels. Interesting. Any commentary share?
https://www.dataroma.com/m/holdings.php?m=CM
Word on the street is that Munger was just tax loss harvesting so still has strong conviction on the company.
Believe it also represented a top 3 position and c20% of funds.
Why he didn’t dumb JD then?
JD is a smaller company than Baba, but more like Amazon, which is asset heavy. JD’s profit margin and ROE is much less than baba, and it doesn’t have a HK listed shares.
If I am bearish and worry about delisting, I would have sold JD first.
He also added to Yandex— a Russian stock…
Word on the street is that Munger was just tax loss harvesting so still has strong conviction on the company
As I read that here a few weeks ago over and over again: Isn’t that just rationalization from people having followed Charlie deep into the red on BABA and not wanting to realize that he changed his mind?
If I am not mistaken the same 50% (FIFO => the 300k shares he bought first) he now sold for probably around $110 he did before buy for on average of $210 (Q1’21: 160k for $240 average + Q3’21: 140k for $170), resulting in around $100 loss per share.
What do corporations (Daily Journal) pay in the US? 35%? Say he has $100 taxable cap gain with stock X, offset by a $100 loss on a BABA share. So he saves $35 on taxes.
If he really had STRONG conviction with respect to BABA, expecting that his original buying price of $210 would look cheap in a few years: Wouldn’t he then rather pay those $35 tax?
DJCO @ 2 year low.
It’s clear Baba is suffering. My wife’s cousin was laid off late Jan and still couldn’t find a job. Every tech firm in China is cutting people. On Zhihu, people says there’s another round coming this month and a 3rd round in June.
All this is caused by the wrong policy of the govt. and I think they are trying to reverse it.
On the other hand, by my experience, tech firm’s stock prices tend to bottom when they have rounds of job cutting.
Also, in a recent interview with Howard Marks at Oaktree, he says he’s bullish on China. Specifically, he said “when some analyst call the stocks uninvestable, that means the stock has to be under valued”
JP Morgan Chase & Co (NYSE: JPM) upgraded multiple Chinese internet companies, including Alibaba Group Holding Limited (NYSE: BABA) and Tencent Holding Ltd (OTC: TCEHY), to Overweight, Bloomberg reports.
JPM also upgraded shares of Meituan (OTC: MPNGY), NetEase, Inc (NASDAQ: NTES), and Pinduoduo Inc (NASDAQ: PDD).
“Significant uncertainties facing the sector should begin to abate on the back of recent regulatory announcements,” the firm added.
The policy developments since their mid-March call have been supportive, diminishing risks related to regulation, delisting of American Depositary Receipts, and geopolitics.
Investor caution regarding China’s battered tech sector, with worries about persistent regulatory risks and Federal Reserve hikes adding pressure, drove the change in view.
The provocative label helped erase some $200 billion from the U.S. and Asian markets and prompted one Chinese technology firm to downgrade JPMorgan’s underwriting role on an initial public offering.
JPM had caused a stir in the financial market by calling the sector “uninvestable” just two months back.
Meanwhile Bridgewater have increased their stake significantly. Interesting moves from the Super Investors.
“ Meanwhile Bridgewater have increased their stake significantly. Interesting moves from the Super Investors. ”
Wow, this is interesting.
Speaking of Bridgewater, Ray Dalio is deeply deeply connected with the highest circle of the Chinese political circle. He has direct relationships with the certain top leader in China — because Bridgewater manages money for Chinese government.
He once said: if you want to know what’s going on with Chinese economy, only Li Keqiang tells the truth — something like that.
“ Meanwhile Bridgewater have increased their stake significantly. Interesting moves from the Super Investors. ”
However, Bridgewater’s investment process is pretty systematic macro driven. It’s possible they want to overweight China etc, but I don’t think they are doing stock pickings. Ray Dalio may had a strong view about China but he is not going to tell his people to buy Baba
Baba is his largest individual Chinese position. Others are ETF’s or American stocks.
I’ve just checked on Tikr and BABA is the funds largest individual shareholding now ahead of JNJ and Coke. Pretty strong conviction.