Some hedge funds may have lost millions on bets on Chinese Didi Global – .

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Some hedge funds may have lost millions on bets on Chinese Didi Global – .


TORONTO, Dec. 8 (Reuters) – Several hedge funds may have been bruised by bets on Didi Global Inc (DIDI.N), according to documents filed after shares fell since the Chinese rideshare company announced its intention to retire from the New York Stock Exchange.

Didi shares are down 56.8% from their IPO price on June 30. The decline accelerated after the company said on Friday it planned to pull out of the New York Stock Exchange and continue listing in Hong Kong, bowing to Chinese regulators angered by its US debut. Read more

Hedge funds were invested in 94.4 million shares of Didi at the end of September, down 13.2 million shares from the previous quarter, according to US 13F records compiled by the tracker of Symmetric industry.

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It is not known whether hedge funds have reduced their investment further since then, but Reuters calculations show that the 7.9% drop in Didi shares between late September and December 7 would have erased a combined value of 60, $ 9 million from these positions.

At the end of September, 27% of the value of the company was held by institutional investors held by managers classified as hedge funds by Symmetric.

Symetric notes that stocks with a high percentage of ownership by hedge funds may be susceptible to liquidation by these funds during times of stress.

Of the hedge funds that bought shares in the third quarter, Bridgewater Associates bought nearly 9 million, the documents show.

Penserra Capital bought 5.4 million shares of Didi while Owl Creek Asset Management bought 1.7 million shares and Seven Eight Capital 537,145 shares, according to the documents. They showed that Paulson & Co added 1.6 million shares at the end of the third quarter while Seven Eight Capital bought 537,145 shares.

Bridgewater, Penserra, Owl Creek, Paulson and Seven Eight did not respond to requests for comment.

Tiger Global Management and billionaire George Soros’ fund also had significant stakes in Didi at the end of the third quarter, together representing 4.7 million shares at the end of September.

Singaporean state fund Temasek reduced its position in Didi by 3.6 million shares as of September 30, but maintained a stake of 29.4 million shares.

Tiger and Soros did not respond to requests for comment while Temasek declined to comment on the position.

It is not known if these companies are still invested, but an executive of a large US-based hedge fund, which had a small position in Didi that he recently liquidated, said many people are even pulling out. ‘they plan to return eventually. later.

“There is also an issue that retail investors and even some mutual funds may not be able to easily own Hong Kong listed stocks and will be forced to sell, so there would be more pressure,” he said. declared the leader.

Public pension plans that held Didi shares included the Canada Pension Plan (CPP), the Montreal-based Caisse de Dépôt et Placement du Quebec, and the California Public Employees’ Retirement System (CalPERS).

A spokesperson for the Fund declined to comment while RPC and CalPERS could not be immediately reached for comment.

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Reporting by Maiya Keidan, additional reporting by Svea Herbst-Bayliss in New York; edited by Megan Davies and David Gregorio

Our Standards: Thomson Reuters Trust Principles.

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