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9 Latest Stock Picks of Chinese Billionaire Chen Tianqiao’s Shanda Asset Management

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·7 min read
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In this piece, we will take a look at the 9 latest stock picks of Chinese billionaire Chen Tianqiao's Shanda Asset Management. If you want to jump ahead to the top five stocks in this list, then head on over to the 5 Latest Stock Picks of Chinese Billionaire Chen Tianqiao's Shanda Asset Management.

Mr. Chen Tianqiao is a Chinese billionaire who is in charge of the Shanda Asset Management firm. He lives in California, United States, and his investment firm is a spinoff from an online gaming company that he founded in China in 1999. This company, dubbed Shanda Interactive Entertainment Limited, became the first Chinese online gaming company to publicly sell its shares on an American stock market when it listed its shares on the NASDAQ in 2004.

Since then, Shanda Entertainment has transformed itself into a private hedge fund, after it spun off its gaming division in 2009, which managed to raise $1 billion by selling its shares under the ticker NASDAQ:GAME. Following the spin-off, Mr. Chen and other Shanda partners took the company private, in a transaction valued at more than $2 billion.

The hedge fund executive moved to the United States from Singapore in 2017, after having lived in the island nation with his wife for eight years. Over the years, his net worth has dropped, and according to Forbes Magazine, Mr. Chen was worth $1.8 billion as of 10th December 2021, marking a more than 50% drop in his net worth since 2017, when he was valued at $4 billion. He is also credited to be the pioneering force in China's online gaming industry, owing to the fact that his company was the first to enter the space.

Shanda Asset Management is headquartered in Menlo Park, California, and Mr. Chen is its chief executive officer and chairman. Its investment portfolio was worth $938 million as of the third quarter of last year. This marks for a sharp drop over the second quarter, by the end of which the investment company had an asset value of $1.2 billion, which itself marked for a roughly $600 million drop over its value of $1.8 billion at the end of last year. A brief look at its holdings reveals that the firm's portfolio is spread across companies operating in several different segments. These segments cover semiconductor fabrication, online retailing, consumer electronics, supermarkets, aviation, financial payments, and music streaming to name a few.

The hedge fund has invested in 64 companies according to its Q3 2021 investment portfolio, and the top holdings are concentrated in chip fabrication, technology, and retail. Some of its largest investments are in Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM).

Photo by Kaleidico on Unsplash

Our Methodology

We picked these stocks from the third quarter portfolio of Shanda Asset Management. The firm added these stocks in its portfolio in the third quarter of 2021.

9 Latest Stock Picks of Chinese Billionaire Chen Tianqiao's Shanda Asset Management

9. Invitae Corporation (NYSE:NVTA)

Shanda Asset Management’s Stake Value: $1 million of CALL Options

Percentage of Shanda Asset Management’s 13F Portfolio: 0.11%

Number of Hedge Fund Holders: 24

Invitae Corporation (NYSE:NVTA) is an American company that extracts human genetic information through tests and provides it to healthcare professionals and patients to improve their decision making. Its tests cover cancer, neurology, cardiology, and pediatrics among other areas.

Mr. Chen's Shanda Asset Management bought 40,000 Call options for Invitae Corporation (NYSE:NVTA) in the third quarter of last year, which were worth $1 million and represented 0.11% of its portfolio. During the same time period, 24 of the 867 hedge funds polled by Insider Monkey owned the company's shares.

Wells Fargo lowered its price target to $25 from $35 in November 2021, outlining that the company might be unable to broaden its competitive advantages.

Invitae Corporation (NYSE:NVTA) joins Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in the list of Mr. Chen's favorite stocks.

Invitae Corporation (NYSE:NVTA)'s largest investor is Catherine D. Wood's ARK Investment Management which owns 25 million shares worth $736 million.

8. Archer Aviation Inc. (NYSE:ACHR)

Shanda Asset Management’s Stake Value: $1.9 million

Percentage of Shanda Asset Management’s 13F Portfolio: 0.2%

Number of Hedge Fund Holders: 28

Archer Aviation Inc. (NYSE:ACHR) is a Californian upstart that aims to capitalize on the recent interest and growth in companies using alternative fuels for air transport and mobility. The company is designing and developing electric vertical take off and landing (eVTOL) aircraft for passenger use.

Since it's a startup, Archer Aviation Inc. (NYSE:ACHR) exited its third quarter with a GAAP EPS of -$2, alongside $796 million in cash on the back of quarterly capital expenditure of $1.1 million. Cantor Fitzgerald set a $14 price target and an Overweight rating for the company's shares in November 2021, outlining that it is placed strategically well in its industry niche.

During the third quarter of last year, Shanda Asset Management bought 220,000 Archer Aviation Inc. (NYSE:ACHR) shares. These were worth $1.9 million and represented 0.2% of its portfolio. 28 of the 867 hedge funds part of Insider Monkey's research for Q3 2021 held stakes in the company.

Glenn Russell Dubin's Highbridge Capital Management is Archer Aviation Inc. (NYSE:ACHR)'s largest shareholder, through a $21 million stake owned via 2.2 million shares.

7. Lilium N.V. (NASDAQ:LILM)

Shanda Asset Management’s Stake Value: $1.9 million

Percentage of Shanda Asset Management’s 13F Portfolio: 0.2%

Number of Hedge Fund Holders: 19

Lilium N.V. (NASDAQ:LILM) is an aviation company that aims to develop electric aircraft that is capable of vertically taking off and landing. Referred to as eVTOL, the aircraft will be designed to quickly transport goods and people, as part of a growing industry that is witnessing a flurry of startups and investment.

Mr. Chen's Shanda Asset held 186,000 Lilium N.V. (NASDAQ:LILM) shares as of Q3 2021, in a stake worth $1.9 million and representing 0.2% of its portfolio. A survey of 867 hedge funds conducted by Insider Monkey for the same time period revealed that 19 had owned the company's shares.

At the end of its third quarter, Lilium N.V. (NASDAQ:LILM) had a cash balance of $529 million, which appeared sufficient after its operational spending of $56 million for the three months. Oppenheimer set a $24 price target for the company in September 2021, outlining that the firm's technology has performance and safety advantages and that its regulatory progress was satisfactory.

Lilium N.V. (NASDAQ:LILM)'s largest shareholder is Carl Tiedemann and Michael Tiedemann's TIG Advisors. It owns 1.6 million shares worth $17 million.

6. Unity Software Inc. (NYSE:U)

Shanda Asset Management’s Stake Value: $2.5 million

Percentage of Shanda Asset Management’s 13F Portfolio: 0.26%

Number of Hedge Fund Holders: 36

Unity Software Inc. (NYSE:U) provides a three-dimensional platform for a host of consumer electronic devices such as smartphones, headsets, gaming consoles, and personal computers. This platform lets its users, which are primarily content developers, run their products and earn money from them.

Unity Software Inc. (NYSE:U) earned $286 million in revenue and -$0.06 in non-GAAP EPS for its third quarter, outpacing Wall Street estimates for both metrics. Credit Suisse raised the company's price target to $185 from $160 in November 2021, outlining that Unity Software Inc. (NYSE:U)'s strong technologies have a bright future.

Shanda Asset Management took a $2.5 million stake worth 0.26% of its portfolio in Unity Software Inc. (NYSE:U) during Q3 2021. 36 of the 867 hedge funds part of Insider Monkey's research for the same time period owned the company's shares. The company also offered $1.5 billion in debt to potential investors in mid-November 2021 in the form of convertible notes offering. A key strength of Unity Software Inc. (NYSE:U)'s platform is that it allows developers to build their software product only once and then ensure that it can run and support 20 different software platforms. Examples of these platforms include the iOS and Android smartphone ecosystems.

Unity Software Inc. (NYSE:U)'s largest investor is Jim Davidson, Dave Roux, and Glenn Hutchins's Silver Lake Partners. This is due to it owning 40 million shares worth $5 million.

Along with the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN), Unity Software Inc. (NYSE:U) has made its way into Mr. Chen's hot stock picks.

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Disclosure: None. 9 Latest Stock Picks of Chinese Billionaire Chen Tianqiao's Shanda Asset Management is originally published on Insider Monkey.