(Yicai) Nov. 15 -- The proportion of China concept stocks in the US portfolio of HHLR Advisors increased last quarter as the fund manager under Hillhouse Capital watched top picks oncology company BeiGene and e-commerce giant Alibaba Group Holding soar.

As of Sept. 30, shares of US-listed Chinese companies made up 93 percent of HHLR Advisors' local portfolio based on market capitalization, up from 85 percent in June, according to the Hong Kong-based fund manager that is obliged to disclose its US positions due to its asset scale exceeding USD100 million. Hillhouse Capital is one of China's most active investment institutions.

HHLR pared its holdings in the third quarter to hold equity in 48 companies, down from 78, selling shares in tech companies listed in the United States. However, its portfolio grew to USD4.6 billion, up more than 10 percent from a quarter ago. The increase was driven by stock price gains, with HHLR's largest holding, BeiGene, jumping 57 percent over the three months, and its second-largest holding, Alibaba, rising 47 percent.

Nine of HHLR's top 10 stock holdings were China concept stocks, including Temu-owner Pinduoduo, cell therapy firm Legend Biotech, e-commerce platform Vipshop Holdings, NetEase, real estate marketplace operator KE Holdings, travel agency Trip.Com Group, and online brokerage Futu Holdings.

In the third quarter, HHLR increased its holdings in seven US-listed stocks, all involving Chinese companies. They were three e-commerce firms: Alibaba, JD.Com, and Vipshop, as well as game developer NetEase, Trip.Com, courier firm ZTO Express, and Futu. Since then, Futu, the operator of financial platforms Futubull and Moomoo, has jumped almost 46 percent while Trip.Com, ZTO, and Vipshop each have risen over 20 percent.

In the first quarter, HHLR sold almost 90 percent of its shares in Alibaba. However, it later added to its holdings in the Taobao operator while reducing its stakes in Pinduoduo, KE, takeout delivery platform DoorDash, and customer relationship management platform Salesforce.

Industry professionals told Yicai that HHLR may have sold Pinduoduo shares to lock in profits and avoid volatility risks.

During a conference call in late August, Pinduoduo's management repeatedly stated that its profits might start declining in the future, as the company would need to reinvest its funds, with no share buybacks or dividend distributions anticipated in the foreseeable future. Shortly thereafter, Pinduoduo's stock fell almost 29 percent overnight, and its market cap dropped by USD55.4 billion.

Editors: Shi Yi, Emmi Laine