HHLR Advisors' Q1 2026 13F is a $1.67B, 38-position portfolio that captures one of the most dramatic single-quarter AUM contractions in institutional data: AUM fell from $3.10B in Q4 2025 to $1.67B in Q1 2026 (-$1.44B, -46.4%), driven primarily by mark-to-market declines in the portfolio's two largest positions -- PDD Holdings (-61.2% shares, -$790M from $1.22B to $425.6M) and Alibaba Group (-54.8% shares, -$488M from $796M to $307.8M) -- combined with active reductions in Futu Holdings (-12.9% shares, -$74M) and Webull (-74.9% shares, -$39M). Despite the AUM collapse, the portfolio's thematic identity remains intact: it is a concentrated China-focused growth-and-technology-and-healthcare fund. Four positions account for 73.8% of AUM: PDD (25.4%, ecommerce), Alibaba (18.4%, tech conglomerate), BeOne Medicines (18.4%, oncology biotech), and Futu (11.6%, digital brokerage). The healthcare/biotech sleeve (BeOne, Legend Biotech, Arrivent BioPharma, Cytek Biosciences, plus 12+ additional clinical-stage names) totals approximately $586M (35.0% of AUM) and was largely held steady -- the manager's conviction in biotech R&D remained stable even as the tech-and-fintech positions were sharply reduced. The quarter's 42 changes (9 new, 4 sold, 2 increased, 6 decreased, 21 unchanged) reflects selective repositioning: the manager opened 9 new positions concentrated in semiconductor infrastructure (Marvell, Intel, NVIDIA tiny add, Lumentum), materials/supply chain (Corning, Coherent), and emerging-market ecommerce/retail (Vipshop, Dingdong), while completely selling 4 small positions (Alphabet Class A, iShares Bitcoin ETF, Moody's, Centrais Elet). Only two positions were increased -- Taiwan Semiconductor (+37% shares, +$1.8M) and VNET Group (+23% shares, minor add) -- both minor. The dominant narrative is passivity in biotech with aggressive reduction in China fintech/tech exposure. A 77.25 whaleScore on $1.67B reflects both AUM threshold and concentration; the portfolio remains high-conviction in its core themes despite the AUM halving.
The two positions that drove the AUM collapse are the two largest. PDD Holdings ($425.6M, 25.4%, 4.17M shares, -61.2% shares, -$790M from Q4's $1.22B) -- Pinduoduo-and-Temu, China's ecommerce-and-cross-border-retail giant -- was the portfolio's largest position in Q4 at $1.22B (39.2% of AUM) and was reduced by nearly two-thirds in Q1. The $790M decline breaks into share reduction (-61.2% from 10.7M to 4.17M shares, an active sell of roughly 6.53M shares worth approximately $600-650M at Q1 prices) and mark-to-market weakness in the remaining shares (PDD stock was also under pressure in Q1 from regulatory and competitive concerns). PDD's reduction is the single largest trade in the filing by dollar impact. Alibaba Group ($307.8M, 18.4%, 2.45M shares, -54.8% shares, -$488M from Q4's $796M) -- China's ecommerce-and-cloud-and-fintech conglomerate -- was similarly reduced by more than half. The $488M decline reflects both the 2.98M share reduction (roughly $350-400M of active selling) and mark-to-market weakness. Alibaba's Q4 position at $796M had been the portfolio's second-largest anchor; its reduction to $307.8M reflects both the manager's decision to trim a position that had become stretched and Alibaba's own stock-price weakness amid continued Chinese regulatory and competitive uncertainty. The combined impact of PDD and Alibaba ($1.28B of AUM decline) accounts for the majority of the portfolio's $1.44B AUM drop.
BeOne Medicines ($307.2M, 18.4%, 1.03M shares, essentially flat) -- an Israeli biotech focused on precision oncology and antibody-drug conjugates -- is the portfolio's most stable large position and the only anchor that survived Q1 essentially unchanged. BeOne's flat positioning through a quarter of massive portfolio repositioning signals the manager's highest conviction in the biotech thesis. At 18.4% of AUM (effectively a third of the remaining portfolio after the China tech reductions), BeOne is treated as a core holding with non-negotiable weight. Futu Holdings ($194.1M, 11.6%, 1.42M shares, -12.9% shares, -$74M from $267.7M) -- a Chinese digital brokerage-and-wealth-management platform -- was reduced moderately. Futu is a fintech-and-capital-markets play on Chinese retail investing growth; the reduction may reflect concerns about Chinese regulatory pressure on online brokerages or about Futu's margin compression from commission-free trading. Webull ($7.2M, 1.5M shares, -74.9% shares, -$39M from $46.4M) -- a Chinese retail-trading-and-social-trading platform (Futu's primary competitor) -- was nearly completely eliminated; the $39M liquidation is a decisive exit from the online-brokerage vertical. The Webull elimination combined with the Futu reduction signals that HHLR is exiting China fintech-at-scale while maintaining a smaller Futu residual.