Li Lu

Li Lu’s Himalaya Capital ended the first quarter with $3.2 billion in assets, and the portfolio remains a concentrated bet on a handful of names he has held for years. Alphabet is the dominant position, split across two share classes that together account for roughly 45% of the fund. That is a heavier weighting than most large value managers carry in any single stock, and it shows no sign of trimming. PDD Holdings is the second-largest holding at 14.7%, followed by Berkshire Hathaway at 13.4%. East West Bancorp, a regional lender Lu has owned since the financial crisis, makes up another 9.3%. The quarter’s activity was modest. Lu added to his Bank of America preferred shares and kept his existing stakes in Occidental warrants, Crocs, Tencent Music, and S&P Global. None of these moves suggest a shift in thesis. The fund’s style is classic deep value with a willingness to sit in illiquid or out-of-favor positions. The Occidental warrants, for example, are a leveraged bet on oil that most peers would avoid. The Crocs position is similarly idiosyncratic. What separates Lu from his peers is the absence of the usual large-cap technology names outside Alphabet. There is no Microsoft, no Amazon, no Meta. Instead, the portfolio leans on Chinese consumer internet through PDD and Tencent Music, plus financials and energy. That mix gives Himalaya a profile closer to a private equity fund than a typical 13F filer. The concentration is extreme, and the turnover is low. Lu is not trading around positions; he is holding businesses he believes are mispriced, and the quarter’s filings show he has not changed that view.