New York (HedgeCo.net) – In this week’s HedgeCoVest newsletter, we pointed out how two well-known Chinese stocks were not participating in the huge rally in Chinese stocks. The article was entitled Not All Chinese Stocks Are Rallying.

The two individual stocks mentioned in the article were Baidu (Nasdaq: BIDU) and Alibaba (NYSE: BABA). In the article, it was pointed out how the managers on our platform had steered clear of these two stocks for the most part. It turns out our managers aren’t the only ones that feel that way. Hedge fund manager Daniel Loeb, CEO of Third Point LLC, dumped his 10 million shares during the first quarter according to a recent article from GuruFocus.

“The most significant transaction Loeb made in the first quarter was the sale of his stake in Alibaba Group Holding Ltd, a Chinese ecommerce company. Loeb sold his 10,000,000-share stake for an average price of $90.25 per share. The sale had a -9.4% impact on Loeb’s portfolio.”

BABA is up 2.3% so far in the second quarter, but it has lost 9.28% since peaking in mid-May. The Chinese market as a whole has been under pressure in the last few weeks with the Shanghai Composite Index falling over 13% from June 12 through June 19.

Rick Pendergraft
Research Analyst
HedgeCoVest