Hedge fund manager Michael Burry adds to JD.com position, citing technical pressure rather than fundamental weakness in China tech stocks.
Hedge fund manager Michael Burry has expanded his position in JD.com, purchasing shares at $24.79 amid a broader sell-off in Chinese and Hong Kong stocks. The move follows his argument that the decline is driven by capital rotation rather than business fundamentals, as outlined in a recent Substack post.
Burry noted that momentum traders and large Asian-focused funds are reallocating capital from Hong Kong to markets like South Korea and Japan, creating self-reinforcing technical pressure. He described the sell-off as detached from company performance, with leading Chinese firms pushed near recent lows.
In addition to JD.com, Burry adjusted other holdings, including selling Alibaba for tax-loss purposes and adding to stakes in Microsoft, Adobe, and Fiserv. His contrarian bet on China tech contrasts with broader market sentiment.