In a significant strategic shift, Li Lu's Himalaya Capital Management dramatically increased its bet on Chinese e-commerce giant PDD Holdings (PDD) in the second quarter of 2026. The fund boosted its PDD stake by over 133%, making it the third-largest holding at 22.17% of the $3.7 billion portfolio. This move demonstrates high conviction in PDD's growth prospects, even as the company faces regulatory scrutiny in Europe and trade policy pressures. The filing also revealed a continued commitment to Alphabet, with its two share classes remaining the top positions, and an increased stake in Berkshire Hathaway.
Reflecting Li Lu's highly concentrated investment approach, the portfolio was trimmed from fourteen stocks to just eight. This consolidation involved the complete exit from several prominent US companies. Most notably, Himalaya sold its entire position in Bank of America (BAC), a holding that had been in the portfolio since the first quarter of 2020. Other significant exits included energy firm Occidental Petroleum (OXY) and financial data providers S&P Global (SPGI) and Moody's Corporation (MCO).
These bold moves align with Li Lu's established value investing philosophy, which favors concentrating capital in a small number of deeply understood, high-quality businesses with strong long-term growth potential. The increased concentration in a few key names, coupled with the exit from several financial and energy sector holdings, signals a clear strategic pivot. As a disciple of Warren Buffett and Charlie Munger, Li Lu's portfolio adjustments are closely watched for insights into his long-term market views.