DiDi's US Delisting Could Have Jeopardized Investment Of Multiple Hedge Funds

DiDi Global Inc's DIDI loss in share value since its plans to withdraw its U.S. listing may have put a dent in multiple hedge funds invested in the stock, Reuters reports. Reuters calculations show the 7.9% fall in Didi's shares between the end of September and December 7 would have wiped a combined $60.9 million of value from those positions.

• As of the end of September, institutional investors owned by managers classified as hedge funds by industry tracker Symmetric held 27% of the company value.
• Among hedge funds that bought shares in Q3, Bridgewater Associates purchased almost 9 million.
• Penserra Capital bought 5.4 million in Didi's stock, while Owl Creek Asset Management purchased 1.7 million and Seven Eight Capital 537,145 shares. 
• Paulson & Co added 1.6 million shares at the end of Q3, while Seven Eight Capital purchased 537,145 shares.
• Tiger Global Management and billionaire George Soros' fund also held sizeable stakes in Didi at the end of Q3, together accounting for 4.7 million shares at September end.
• Singapore's state fund Temasek reduced its position in Didi by 3.6 million shares as of September 30 but maintained a stake of 29.4 million shares.
• Among the public pension plans that held shares of Didi were Canada Pension Plan (CPP), Montreal-based Caisse de dépôt et placement du Québec, and the California Public Employees' Retirement System (CalPERS).
• Didi's shares have lost 56.8% from their June 30 IPO price. 
• The slide accelerated after DiDi planned to pursue a listing in Hong Kong following a U.S. delisting in response to China's regulatory wrath.
• Hedge funds were invested in 94.4 million shares of Didi at September end, down 13.2 million shares from the previous quarter.
• "There is also a problem that retail investors and even some mutual funds may not be able to easily own Hong Kong-listed shares and will be forced to sell, so there would be more pressure," said a U.S.-based hedge fund executive.
• Price Action: DIDI shares traded lower by 2.99% at $6.99 on the last check Wednesday.