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Eastern Time, David Tepper's Appaloosa LP submitted a 13F filing to the SEC, revealing that in Q4 of 2024, the hedge fund significantly increased its holdings in Chinese stocks and ETFs.

Specifically, Appaloosa's stake in Alibaba was boosted by 18%, bringing their total shares to 11.8 million, valued at over $1.2 billionBy the end of 2024, Alibaba became its largest holding, comprising about 15.4% of the total portfolio.
Notably, Alibaba's stock has skyrocketed this year, climbing more than 31% year-to-date as of Monday’s closeThe company's Qwen 2.5-Max model, launched by their AI team last month, outperformed benchmarks set by leading models from OpenAI, Meta, and DeepSeek—solidifying investor confidence in Alibaba's future.

In addition to Alibaba, Tepper significantly increased his stake in JD.com, raising his share count from 7.3 million to approximately 10.5 million shares, a staggering 44% increase, making it the largest acquisition among major Chinese stocksTepper also expanded his investment in Pinduoduo, increasing his holdings by about 55,000 shares to 5.4 million shares, which now represent 8.04% of the Appaloosa portfolio.
Concerning ETFs, David Tepper has also notably increased allocations to the KraneShares CSI China Internet ETF by approximately 81,000 shares and the iShares China Large-Cap ETF by around 80,000 shares.

Furthermore, apart from his bullishness on Chinese tech stocks, Tepper slightly increased his holdings in Nvidia, Uber, and AMD, reflecting the broader trend of tech investments

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However, Appaloosa did reduce its stakes in heavyweights such as Meta and Amazon by approximately 20%, which may reveal a shift in investment strategy towards industries perceived as having greater growth potential.

“Buy Everything China” Tepper, who owns the NFL’s Carolina Panthers and has built an impressive investment track record over three decades, is often regarded as one of the greatest hedge fund investors in historyHe has a knack for identifying opportunities at market lows; his notable success came in 2009 when he strategically invested in banks like Bank of America and Citigroup, capitalizing on their depressed valuations.

Reflecting on his previous comments, during the announcements of new fiscal and monetary policies intended to stimulate the Chinese economy in September 2024, Tepper made a rare public appearance to indicate his strategy: “Buy everything, China.” The latest 13F disclosures exhibit that he has indeed followed through with this ambitious commitment.

Tepper firmly believes that the potential rewards of investing in the Chinese stock market far outweigh the risks associated with itHis remarks last September highlighted an unexpected briefness in the breadth and strength of Chinese policies, prompting him to actHe now perceives the Chinese market as a hotspot for international investments. On Monday this past week, U.S. investors largely ignored the latest tariff threats from the president, as three major stock indices in the U.S. rose collectively, with a notable uptick in popular Chinese stocks

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The Nasdaq Chinese Golden Dragon Index surged by 2.61%, hitting a four-month closing high, with Alibaba leading the charge with a 7.55% gain, followed by nearly 5% for JD.com and almost 2% for Pinduoduo.
Throughout this year, the performance of Chinese stocks has consistently climbed, reflecting an environment conducive to higher returnsAnalysts have commented that the recent explosion in Chinese AI capabilities has re-evaluated investments by overseas entities in Chinese assets, shifting perceptions.

On the 20th of the previous month, the launch of the reasoning model DeepSeek-R1 by a Chinese AI startup made ripples across Silicon ValleyWith exceptionally low training costs and comparable reasoning capabilities to global models, it raised questions among investors regarding the necessity for U.S. tech giants to invest exorbitantly in AI R&D.
Significant Shift

Additionally, many leading foreign investment firms—including Goldman Sachs, Deutsche Bank, Bank of America, BlackRock, and UBS—have shown an increased appetite for Chinese stocks and the A-share market.

In its latest report, Goldman Sachs mentioned that under a neutral outlook, the MSCI China Index could rise by 14% this year, with an optimistic projection suggesting a potential increase of up to 28%.

Similarly, Deutsche Bank's head of Asia-Pacific equity research highlighted that 2025 will be pivotal for global investors to reassess China's competitiveness

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