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Renaissance cuts place on NIO; doubles down on XPeng and Li Auto

© Reuters Renaissance cuts position on NIO (NIO); doubles down on XPeng (XPEV) and Li Auto (LI)

By Michael Elkins 

Renaissance Technologies LLC, a prominent hedge fund, has cut its position in the Chinese electric vehicle company Nio (NYSE:) during the 3Q while doubling its bet on XPeng (NYSE:) and Li Auto (NASDAQ:).

Renaissance held 12,681,700 US-traded ADRs of NIO at the end of the third quarter, down 5,087,200 shares, or 28.63 percent, from 17,768,900 shares at the end of the second quarter, according to a Form 13F filing on Monday. The holdings in NIO were worth about $200 million, down $186 million, or 48.18 percent, from $386 million at the end of the second quarter.

While reducing its position in NIO, the fund significantly increased its position in XPeng and Li Auto in the third quarter.

At the end of the third quarter, Renaissance held 6,316,939 shares of XPeng’s US-traded ADRs, up 2,696,339 shares, or 74.47 percent, from 3,620,600 shares at the end of the second quarter.

The fund owned 12,419,600 shares of Li Auto at the end of the third quarter, up 6,390,700 shares or 106 percent from 6,028,900 shares at the end of the second quarter.

In the third quarter, NIO fell 27 percent, XPeng fell 64 percent, and Li Auto fell 40 percent.

According to 13F filings earlier this month, while Renaissance is cutting its position on NIO, Bridgewater Associates increased its holdings along with Baillie Gifford & Co and The California Public Employees’ Retirement System. US billionaire George Soros’ Soros Fund Management also increased its bet on NIO.

Shares of NIO are up 4.74% in mid-day trading on Tuesday.

Shares of LI and XPEV are up 6.8% and 5.44% respectively.

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