Consumer Discretionary

Report by Copley Fund Research

Fund ownership in the stock continues to fall - average weights slip to 4-year low as managers close out en masse. Between Feb and Oct this year, there were 56 closures (vs. 6 openings), led by growth funds. Ignore the corporate action related declines in Housing Development Finance Corp - the JD.com decline is head and shoulders above all stocks in the EM investible universe over the period. The departure of numerous key investors, paired with the still sizeable base of remaining investors (JD.com is the 16th most widely held stock globally), heightens the risk of an additional sell-off, casting a shadow on any potential share price recovery in the near term.