Hedge funds made big bet on Didi before its IPO


Aug 16 - Well-known hedge funds in June made big bets on Didi Global Inc, which went public before Chinese regulators first revealed a probe of the ride-hailing company and its share price plummeted, new filings showed.

Singapore's state fund Temasek purchased 33 million Depository Receipts in Didi, while T. Rowe Associates bought 10.2 million ADRs in the Chinese company, the filings through June 30 showed on Friday.

Tiger Global Management LLC and U.S.-based Adage Capital Partners disclosed also sizeable stakes on Didi. Billionaire Didi ADRs purchased 2.72 million of George Soros' Fund.

The filings provide more insight into some of the global investors who were potentially exposed to the company's sudden loss in value.

Didi raised $4.4 billion in its initial public offering that sold 316.8 million ADRs on 30 June. On July 2, the China cyberspace regulator said it was probing the company, sending Didi's stocks to tumble. The shares are down more than 40% from its debut, as shares have all been down since the first time this year.

During the quarter, Temasek also took a stake in TAL Education Group and increased to 1.7 million ADRs, two other U.S. listed Chinese companies hit by Beijing's regulatory crackdown on New Oriental Education and Technology Group.

The 13 F filings required hedge funds to file quarterly with the Securities and Exchange Commission do not disclose the date purchases were made. They give a snapshot of fund managers' stock holdings as of June 30.

That makes it unclear exactly when investors bought shares in Didi and whether they made or lost money.

Some investors appeared to sour on other Chinese stocks, shedding their holdings in Chinese tech giants during the quarter.

The bank had dissipated its stake in Baidu Inc and Tencent Music Entertainment, according to the Friday filing.