Star Fund Manager Zhang Kun's Bold Investments in Alibaba and Liquor Stocks

Investment Overview by Zhang Kun

Star fund manager Zhang Kun of E Fund Management has made headlines with his substantial new investments in Alibaba Group Holding, now the second-largest holding in his US$8.5 billion portfolio. His recent quarterly report revealed a purchase of 40.4 million shares in Alibaba, comprising 9.1 percent of his fund's assets. This strategic move comes as part of his broader value-investing ideology, as he seeks out companies with generous shareholder returns.

Focus on Leading Consumer Stocks

• Zhang highlights that dividend yields of top consumer companies outperform many market standards.
• His flagship Blue Chip Fund achieved a commendable 15.1% return last quarter, outpacing a 12% gain in its benchmark.

Economic Growth and Market Response

Zhang's investments coincide with recent stimulus measures from Beijing aimed at reinforcing economic growth, including 800 billion yuan in new funding and reduced borrowing costs. As a result, Alibaba’s shares surged 56% during the third quarter, showcasing the potential for future consumer spending following developments like the Singles Day shopping festival.

Strategic Positioning in Liquor Stocks

• In addition to Alibaba, Zhang has ramped up his investments in liquor stocks, more than doubling shares in Shanxi Xinghuacun Fen Wine.
• His largest holding remains Wuliangye Yibin, suggesting confidence in future growth prospects in this sector.