Hillhouse's HHLR Advisors Bets Big on Chinese Stocks Amid Strategic Portfolio Shifts

HHLR Advisors, an independent investment management platform under Hillhouse, recently disclosed its U.S. stock holdings for the end of the fourth quarter of 2024. Data from the disclosure reveals that eight out of the top ten holdings consist of Chinese concept stocks, underscoring HHLR Advisors' ongoing focus on Chinese assets. BeiGene and Alibaba remain the top two major holdings, with other prominent Chinese firms like Pinduoduo, NetEase, KE Holdings, Vipshop, and Legend Biotech also featured prominently.

The disclosed 13F filings indicate HHLR Advisors' diversified investment strategy across sectors such as technology, renewable energy, high-end equipment manufacturing, and integrated circuits. Notably, among the four new stocks acquired by HHLR Advisors in the fourth quarter, two are Chinese: Agora and Hello Group (formerly Momo). Additionally, HHLR Advisors increased its stake in ten stocks during the quarter, four of which are Chinese, including JD.com, KE Holdings, and Dada Nexus. This demonstrates the firm's commitment to investing in a blend of burgeoning and established markets.

Furthermore, the data shows that HHLR Advisors made reductions in 11 stocks, many of which had seen significant price increases. These stocks include BeiGene, Alibaba, Pinduoduo, and Trip.com. BeiGene has been a cornerstone investment for Hillhouse since 2014, with the firm playing an involved role across eight rounds of financing. During the fourth quarter, BeiGene's stock price hit its highest point in over a year, with an over 80% increase between April and October. Similarly, Alibaba saw a 63% rise from July to October. The strategic readjustment of holdings during a period when U.S. equities are at historical highs suggests a measured approach to locking in profits and managing potential risks.