Examining Genesis Investment Management, LLP's Q4 2022 Holdings: Bullish on Chinese E-Commerce and Tech Sectors, Cautious on Valuations in Other Sectors

Genesis Investment Management, LLP is one of the world's top-performing asset management firms. Their investment strategies involve a disciplined approach to managing portfolios that emphasize long-term capital appreciation. The firm's primary focus is on equity investments, primarily in the technology, media, and telecom sectors.

Given this focus, it is interesting to evaluate the firm's Q3 2022 vs. Q4 2022 13F holdings, which have been summarized in the CSV above. The CSV provides data on the firm's current positions in these companies as compared to the prior quarter, including the number of shares held and the value of these holdings in dollars.

Pinduoduo Inc is one of the companies that Genesis Investment Management, LLP increased its holdings in, with a 50 percent change in shares held from Q3 2022 to Q4 2022. This Chinese e-commerce platform focuses on agricultural products, and it has been growing rapidly in recent years. Genesis' purchase of additional shares in Pinduoduo could indicate its confidence in the company's growth prospects.

On the other hand, the firm reduced its holdings in Mercadolibre Inc during the same period, with a decline of 8.5 percent in the number of shares held. This Argentina-based company operates an online marketplace for both buyers and sellers, and it has experienced significant growth over the past few years. However, Genesis' decision to reduce its holdings suggests that the company may not see further upside potential in the stock at its current valuation.

Credicorp Ltd, a Peruvian financial institution that provides banking, insurance, and investment services, saw a fractional decrease of 0.7 percent in the number of shares held by Genesis Investment Management, LLP in the Q4 2022 period. This could indicate that the firm is slightly less bullish on the Peruvian economy and financial industry in comparison to the prior quarter.

JD.com Inc, the Chinese e-commerce giant and one of Genesis' primary holdings, saw a 21.6 percent increase in shares held by the firm. JD.com has become an industry leader in China's e-commerce space and is aggressively pursuing growth opportunities. Genesis' purchase of additional shares in JD.com could indicate its confidence in the company's ability to continue to grow its market share and profitability.

NetEase Inc, a Chinese online gaming company, saw a substantial 33.4 percent increase in shares held by Genesis Investment Management, LLP from Q3 to Q4 2022. NetEase has been experiencing growth in its game development and publishing as well as its e-commerce business. The firm's decision to increase its holding in the company suggests that it sees further upside potential in its current stock valuation.

Alibaba Group Holding LTD, another Chinese e-commerce giant, experienced a marginal decline of 1 percent in shares held by Genesis. This could reflect the recent regulatory crackdown in China and its impact on the growth of Alibaba's business.

Genesis increased its holdings in Liberty Latin America LTD, a telecommunications company, by 10.3 percent, while its holdings in NU HLDGS LTD, a digital security services company, decreased by 16.9 percent. The firm also decreased its holdings in Infosys Ltd. by 39.3 percent, while simultaneously increasing its holdings in ICICI Bank Limited by 4 percent.

Finally, Genesis made two notable cuts during Q4 2022: it completely closed its positions in OZON Holdings PLC and Yandex N V, both of which are e-commerce and tech companies based in Russia.

In summary, Genesis Investment Management, LLP made several changes to its holdings across various sectors in Q4 2022. While it made net purchases in some companies like Pinduoduo and NetEase, it sold shares in companies like Mercadolibre and Infosys. Overall, these moves suggest that the firm is optimistic about the growth prospects of the Chinese e-commerce and tech sectors while potentially more cautious about valuations in certain other sectors.