RWC Asset Advisors (US) LLC has significantly reduced its stake in Kanzhun Limited, selling 834,689 shares valued at approximately $18.03 million, according to a recent SEC filing. This move decreased their holdings in Kanzhun from 8.96% to 5.83% of their reportable assets under management (AUM), reflecting a quarter-end value drop of $24 million due to both the sale and market price fluctuations.
Despite Kanzhun’s solid operational performance, evidenced by a 72% year-over-year increase in net income to $385 million, the stock has underperformed, down 34% over the past year. This divergence raises concerns about the broader macroeconomic and geopolitical challenges facing Chinese firms, prompting RWC to adjust its exposure to this sector.
For market professionals, this transaction underscores the importance of risk management in portfolio strategy, particularly in volatile sectors like Chinese tech. The ongoing sentiment issues may keep Kanzhun’s valuation disconnected from its operational successes, suggesting caution for investors considering similar positions.
Source: fool.com