(Yicai) Aug. 15 – Global firm Hillhouse Investment's public investment arm significantly increased its stake in e-commerce titan Alibaba Group Holdings in the second quarter of this year while selling all of its shares in US chip giant Advanced Micro Devices.

HHLR Advisors' hold of Alibaba's American depositary receipts rose to 5.4 million as of June 30 from 143,900 at the end of March, with a market value of USD387.3 million, according to documents the US Securities and Exchange Commission released yesterday. The stock accounted for 9.6 percent of the fund's portfolio, becoming its third-largest position.

The move was a complete reversal of HHLR's investment strategy from the first quarter, when it sold nearly 90 percent of its stock in Alibaba and significantly cut its positions in other Chinese internet companies, including JD.Com and Baidu.

Last quarter, HHLR also sold all of its 912,400 shares in AMD after acquiring them in the first quarter. The California-based firm's shares reached a record high of USD227.30 in March but tumbled 38 percent as of the end of trading yesterday.

HHLR acquired around 14.6 million shares in Vipshop Holdings in the second quarter, bringing the total value of its stake in this Chinese c-commerce firm to USD192.8 million, making it its sixth-largest stock. It also increased its holding in mobile video game titan NetEase and acquired shares in China's largest online travel agency Trip.Com Group, making them its seventh and ninth-largest stocks, respectively.

In addition, HHLR sold some stock to lock in investment returns, including 2.9 million shares in Pinduoduo, with the Alibaba rival remaining as its largest stock for the third consecutive quarter, worth USD1.2 billion. It bought in Pinduoduo's stock in the second quarter of 2022, which has since surged around 130 percent.

According to the documents, HHLR held 78 stocks in the US as of June 30. Its total portfolio value was about USD4.1 billion, with Chinese companies accounting for nearly 85 percent.

Editors: Dou Shicong, Martin Kadiev