A 13F filing by one of the world’s most respected emerging markets investment managers, Genesis Investment Management, has revealed some surprise buys during the fourth quarter of 2022.
Genesis manages around $15 billion in institutional funds, which it invests specifically in global emerging markets.
The firm is led by UK-based managing partner and portfolio manager, Arindam Bhattacharjee.
Chinese stocks Genesis has been buying
The 5 Chinese stocks in which Genesis increased its position during the final three months of 2022 include:
NetEase Inc (NASDAQ: NTES)
Genesis increased its position in the Chinese internet company by 39% in Q4 2022.
Genesis’ NetEase holding is now worth around $91 million.
Pinduoduo Inc (NASDAQ: PDD)
The innovative Chinese ecommerce company remains a favourite of Genesis. The firm increased its PDD position by 15% in Q4 2022, taking the total value of its holding to around $174 million.
JD.com (NASDAQ: JD)
The Chinese ecommerce giant has experienced rapid growth in recent years. Genesis increased its holdings in JD by 9% in Q4.
The holding is worth around $92 million.
Zai Lab Limited (HKG: 9688)
Genesis also increased its position in Chinese biopharmaceutical company, Zai Lab. The additional Zai Lab stock bought by Genesis accounts for a 5% uptick in the size of its holding.
That position is currently worth around $45 million.
Interestingly, the size of Genesis’ holding in the following two Russian stocks also increased during the quarter.
Ozon Holdings PLC
Ozon Holdings is a Russian ecommerce giant, often referred to as the “Amazon of Russia”.
Genesis increased its stake in Ozon by 2%, bringing the total number of Ozon shares it holds to 2,257,329.
Yandex
Yandex is the most widely used internet search engine in Russia.
Genesis’ stake in Yandex also increased by 2% in Q4, bringing the total number of Yandex shares it holds to 3,947,732.
As recently reported by Asia Markets, trading volumes on Russian stock markets have soared in the early stages of 2023. It’s believed the frenzied volume has been a result of the Luxembourg Ministry of Finance approving the release of Russian assets.
Asia Markets Guide: How to invest in Chinese stocks (5 ways to begin in 2023).