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Hillhouse Capital Management Ltd

Last Updated: 12/3/2020

Hillhouse Capital Management Ltd is a Limited Company that started in 2005 and is primarily owned and controlled by Lei Zhang.

Per it's ADV, Hillhouse’s (HCM) investment philosophy is to seek long-term, risk-adjusted returns through bottom-up analysis and fundamental proprietary research. As part of HCM’s bottom-up analysis, it performs both qualitative and quantitative assessments of potential investments with a particular focus on opportunities upon which it can gain insights and discover value in an ever-changing world. HCM believes that this fundamental research persistence allows it to be a patient, long-term investor

Hillhouse Capital Management Ltd operates out of an office in Central, Hong Kong. Based on the Form ADV filed on 2020-03-30 00:00:00, the investment firm is comprised of 240 employees, only 98 of whom performs investment advisory functions.

Fact Sheet

      Name: Hillhouse Capital Management Ltd
      CRD No: 160896
      Filing Recorded: 2020-03-30 00:00:00
      Year of Origin: 2005
      Employees: 240
      Clients: 32
      AUM: 35,133,645,601
      Management Fee: Unknown Percent
      Performance Fee: Unknown Percent
      Client Type: Pooled Investment Vehicles
      Assets Traded: Unspecified

      Email: Unknown
      Telephone: 852-2179-1988
      Address: Two International Finance Center, 8 Finance Street Suite 2202, 22nd Floor, Central, Hong Kong

Investment Strategy

According to the brochure submitted to IAPD, Hillhouses investment strategy is as follows:

General Strategy. HCM’s investment decisions are based on bottom-up analysis and research. HCM generally focuses on private (or otherwise less liquid) investment opportunities, including venture capital, private equity, private debt and buyout transactions, across multiple industries, but a material portion of client investments may become listed and clients may also participate in publicly-listed (or similarly liquid) investment opportunities. HCM invests primarily in reasonably priced companies that provide substantial long-term growth prospects. Although HCM monitors macro-economic factors and market trends, HCM generally avoids market-timing strategies and focuses primarily on bottom-up opportunities. Clients can hold publicly traded securities.

HCM invests globally with a particular focus on companies or assets having substantial relations with Asia. HCM focuses on understanding fundamental risks, uncovering long-term growth potential, and targeting industries that it understands and can monitor.

Short Strategy and Hedging. HCM may, from time to time, utilize short sales and maintain short positions in order to hedge risks that are present in or that could affect a client portfolio, to generate returns for a client account, or to structure ad manage risks in an investment strategy. HCM is cognizant of the risks of trading short and monitors exposure carefully. HCM is cognizant of the risks of trading short and monitors exposure carefully.

Methods of Analysis

In addition, Hillhouses methods of analysis include:

HCM’s research process employs fundamental, quantitative, and qualitative analysis, including cyclical analysis. HCM focuses on developing a deep, fundamental understanding of investment opportunities through rigorous due diligence and analysis. HCM’s bottom-up approach to analysis and research is generally conducted on a company-by-company basis, but may extend to competitors and industries. HCM evaluates the upside and downside of the companies and opportunities identified and monitor them closely. HCM also conducts on-site visits, crosschecks, and detailed financial analysis of investment opportunities. HCM’s analysis includes vigilant monitoring that continues the due diligence process after an investment is entered into the client’s portfolio. HCM’s extensive due diligence process also assists it in discovering and exploring previously unknown investment opportunities.

Top 10 Holdings from Form 13F

Reporting Period: 06/30/2019

Issuer Share Value(1000s) Put/Call
IQIYI INC 36,006,170 743,527
UBER TECHNOLOGIES INC 15,035,487 697,346
SEA LTD 7,657,037 254,367
ENSTAR GROUP LIMITED 1,204,353 209,895
BEIGENE LTD 1,034,306 128,202
COVETRUS INC 4,667,925 114,177
GOSSAMER BIO INC 4,974,041 110,324
NIO INC 41,938,286 106,943
ALIBABA GROUP HLDG LTD 594,538 100,744
TAL EDUCATION GROUP 2,269,549 86,470

Historical 13F Filings

EdgeGiant has compiled all 13F filings since Q2 2013 for your convenience. You can view historical portfolio position forHillhouse Capital Management Ltdin our 13F section HERE.

To get the comprehensive list of holdings that fall under 13F regulatory guidelines, check out our write up on how to access and use 13Fs in your personal investment decisions.

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Historical Portfolio Holdings for Hillhouse Capital Management Ltd