One of the tricks that I depend on a lot in order to survive in the stock market for over 15 years, is to look at what the big guys have been buying. Ark Invest is definitely our light house in the 20th century and there are multiple websites and tools which could grant us the visibility of how and when they trade. And we need to thank Cathie for her openness to share her trade log on a daily basis.
But what about the era before Ark Invest? What could we have done to check on the big guy? One tool that I often use is the sec filing website. Its a place where all the fund management companies have to share their trade log on a quarterly basis...well not as good as what Cathie has done but it still is a great place to find out the hidden gem from all the smart brains inside the skull of those people who collect 10/20 from us.
One fund house I particularly like to watch is Hillhouse Capital. They are Chinese based firm with and naturally have deeper root into Chinese VC and enterprises and I relied on their report to find out what's hot out there and hopefully I could spot the next Tencent and Aliababa.
I am attaching their latest quarterly report down below and anyone who are interested can have a deep dive into their latest portfolio. But one company that stands out to me from this report is a very small chinese e-commerce company called Yatsen holding (Ticket Symbol : YSG) because of two reasons:
Its a new additional to Hillhouse's portfolio if you company their Q3/Q4-2020 filing
There are many e-commerce companies in Hillhouse's portfolio, and they used to have Alibaba in there, but they sold off all their Alibaba position ever since the Jack Ma fiasco China. And unless i missed any name, Hillhouse held USD34M worth of YSG since Q4 and that rank YSG the 2nd within the e-commerce category of Hillhouse's portfolio. The rank no.1 in e-commerce category of Hillhouse portfolio is Pinduoduo (PDD)
YSG just went IPO for less than a year and immediately got the attention of Hillhouse. I believe the investment specialists of Hillhouse are particular well-connected in the chinese ecosystem, I believe there must be something unique about YSG that Hillhouse gave them a vote of confidence.
I am not smart enough to know what that is, the price action of YSG looks OK to me and I am planning to stand on the shoulder of the giant and open a small position today.