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Keywise Capital Management’s Return, AUM, and Holdings (Part II)

Nina Zdinjak

Read the beginning of this article here.

During the first quarter of 2019, Keywise Capital Management initiated five long positions, with the biggest one in NVIDIA Corporation (NASDAQ:NVDA). This is a Santa Clara-based technology company that designs graphics processing units and system on a chip units for various industries. It has a market cap of $90.39 billion while trading at a price-to-earnings ratio of 28.02. Over the past 12 months, its stock price dropped by 44.04%, and on June 10th it had a closing price of $148.43 per share. Keywise Capital Management purchased 192,200 NVIDIA’s shares, acquiring in that manner a position that was worth $34.51 million, comprising 15.4% of its 13F portfolio at the end of March 2019.

The second biggest new position the fund obtained in a company that offers professional educational services across China, New Oriental Education & Technology Group Inc. (NYSE:EDU). The $14.19 billion market cap company is headquartered in the Haidian district of Beijing. The fund acquired 21,600 New Oriental's shares outstanding, with a value of $1.95 million, creating a position that accounted for 0.86% of its equity portfolio. For the third fiscal quarter ended February 28, 2019, New Oriental reported net revenues of $796.72 million and diluted non-GAAP net income per ADS of $0.69, versus net revenues of $618.08 million and diluted non-GAAP net income per ADS of $0.57 for the third fiscal quarter of 2018. Year-to-date, its stock is up by 61.71%, and on June 10th it had a closing price of $89.44.

Next in line of Keywise Capital Management’s valuable first quarter portfolio additions is Tencent Music Entertainment Group (NYSE:TME), a provider of music streaming services in China with a market cap of $23.38 billion. The company’s apps such as Kugou and QQ Music, for example, are widely popular having more than 700 million active users. The stock is trading at a P/E ratio of 44.14, and over the last 6 months, it gained 2.14%, closing on June 10th with a price of $14.30 per share. The fund obtained 47,800 Tencent’s shares during Q1 2019, which had a value of $865,000. On June 4th, Loop Capital initated coverage on the stock and placed a ‘Buy’ rating with a price target of $12.89.

The other two additions to Keywise Capital Management’s equity portfolio were Pinduoduo Inc. (NASDAQ:PDD), an e-commerce company that promotes group buying deals, and NetEase, Inc. (NASDSQ:NTES), a Chinese Internet technology company. In Pinduoduo, the fund established $697,000 worth a position, on the basis of 28,100 shares outstanding, while in NetEase it had initiated a position worth $531,000 on the account of 2,200 shares. Pinduoduo has a market cap of $23.31 billion, and its stock lost 17.89% over the last 12 months, closing on June 10th with a price of $20.20 per share, and NetEase’ stock gained 3.12% over the same period, having a closing price on June 10th of $262.84.

Disclosure: None

This article was originally published at Insider Monkey.