Table of Contents

• You might want to know


• Main Topic


• Key Insights Table


• Afterwards...

You might want to know

Which holdings did veteran investors Duan Yongping and Li Lu increase most in their latest US 13F filings, and what does that imply about their investment focus?

How have each manager’s overall portfolio concentration and sector exposures shifted as a result of their second-quarter adjustments?

Main Topic

With the release of second-quarter 13F filings, the updated US equity positions attributed to two well-known Chinese investment figures — Duan Yongping (via H&H International Investment) and Li Lu (via Himalaya Capital) — are now public. These reports provide a quarter-end snapshot of holdings, revealing both managers’ recent trading decisions and shifts in portfolio composition. While 13F disclosures do not show intraperiod trades or prices, they do offer a clear view of which securities each manager chose to keep, add to, reduce, or liquidate by June 30.

As of the end of Q2, H&H International Investment reported a total 13F market value near $19.1 billion, down modestly from roughly $20.0 billion at the end of last year. The fund held 18 positions. Apple remained the largest single holding by market value, followed by Berkshire Hathaway B shares and Pinduoduo. Notably, Pinduoduo became the third-largest position after a meaningful increase in shares during the quarter. At the same time, Duan trimmed stakes in a number of major technology names — including Nvidia, Alphabet (Google), Microsoft, and Apple to a lesser extent — and fully exited positions such as TSMC and CrowdStrike.

Li Lu’s Himalaya Capital displayed a more pronounced reallocation. The fund’s reported 13F market value rose from about $3.2 billion at the end of Q1 to roughly $3.7 billion at the end of Q2, while the number of reported holdings fell sharply from 14 to 8. Himalaya dramatically increased its position in Pinduoduo — more than doubling the share count — and also raised its stake in Berkshire Hathaway B. Conversely, Li executed full exits from several names including Bank of America, Occidental Petroleum, S&P Global, H&R Block, Moody’s, and MSCI, trimming the breadth of the portfolio and concentrating assets into the highest-conviction ideas.

Two clear themes emerge from these filings. First, both managers increased exposure to Pinduoduo, signaling a shared view that the company represents an attractive risk-reward opportunity at current valuations. Pinduoduo’s prominent rise in both portfolios is a critical data point — for Duan it became the third-largest holding, while for Li it accounted for over one-fifth of the reported portfolio value at quarter-end.

Second, both portfolios exhibited greater concentration. Duan’s top five holdings (Apple, Berkshire B, Pinduoduo, Tesla, and Nvidia) together represented a very large share of the portfolio, and Apple plus Berkshire alone constituted more than 65% of H&H’s exposure. Li’s concentration was even stronger: his fund reported only eight positions, with Alphabet’s two share classes, Pinduoduo, and Berkshire forming the vast majority of asset weight. This move toward fewer, larger positions suggests a preference for high-conviction investments rather than broad diversification in these managers’ current tactical approach.

Examining individual adjustments provides additional insight into their views. Duan increased Pinduoduo and re-initiated a position in Alibaba, while materially reducing Nvidia (a >50% share cut) and trimming Alphabet and Microsoft. Li’s activity reflected aggressive redeployment: after previously expanding into a number of names, he largely reversed that diversification and redeployed capital into Pinduoduo and Berkshire, closing several smaller or newly added positions. These changes may reflect differing conclusions about near-term growth trajectories, margins of safety, or industry cyclicality, particularly within technology and financial sectors.

It is important to emphasize the limitations of 13F data. These filings report long US-equity positions at quarter-end and do not disclose transaction timing, option positions, short positions, or holdings in non-US instruments and private markets. Consequently, while the filings illuminate portfolio tilts and shifts in conviction, they do not fully reveal each manager’s implementation details, tax considerations, or intraperiod rebalancing. Investors should therefore interpret 13F updates as useful signals, not prescriptive templates for replication.

Overall, the Q2 disclosures show both Duan Yongping and Li Lu moving toward higher portfolio concentration and adding to Pinduoduo, while trimming or exiting a range of other public equities. The combination of increased conviction in a few names and reduced holdings breadth underlines a calculated preference for concentrated exposures to companies they identify as having favorable risk-adjusted prospects.

Key Insights Table

Afterwards...

Looking ahead, further research into a few areas would sharpen understanding of these managers’ decisions. First, detailed sector- and business-model analysis of Pinduoduo — including competitive positioning, user engagement metrics, margin trends, and monetization pathways — can help explain why it attracted increased allocations.

Second, continuity and risk assessment work on large-core holdings such as Apple and Berkshire Hathaway remains valuable: analysing cash flow durability, capital allocation policies, and enterprise exposure to macro risks will clarify their roles as portfolio anchors. Third, monitoring successive 13F filings and other disclosure sources (fund letters, interviews, regulatory filings outside 13F) can reveal whether these concentration moves reflect durable strategic shifts or quarter-specific opportunistic trades.

Finally, investors should continue to explore portfolio-construction techniques that balance concentration with risk controls — for example, scenario analysis, position sizing frameworks, and drawdown mitigation strategies — to evaluate whether following high-conviction managers aligns with their own objectives and risk tolerance. Ongoing diligence into company fundamentals, valuation discipline, and position-level risk management remains essential.