Li Lu - Himalaya Capital Management Portfolio Q2’2025: Top Holdings & Recent Changes
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Li Lu, founder of Himalaya Capital Management, continues to exemplify disciplined value investing with a global perspective. His Q2’2025 portfolio showcases a tightly concentrated $2.7 billion allocation across just nine positions, reflecting both conviction and adaptability as he makes notable moves in financials and technology.
Portfolio Overview: Focused Conviction, Global Reach
Portfolio Highlights (Q2’2025): - Market Value: $2,689.2M - Top 10 Holdings: 100.0% - Portfolio Size: 9 +1 - Average Holding Period: 12 quarters - Turnover: 11.1%
Li Lu’s portfolio remains a textbook example of high-conviction investing, with the top ten holdings accounting for the entire portfolio—underscoring his preference for deep research and meaningful stakes over broad diversification. The addition of one new position this quarter signals a willingness to adapt, while the average holding period of 12 quarters highlights a long-term orientation.
Turnover at 11.1% is modest, suggesting that most moves are incremental rather than wholesale shifts. This disciplined approach is characteristic of Himalaya Capital’s philosophy: focus on quality, buy with a margin of safety, and let compounding work over time. The portfolio’s blend of U.S. and Chinese equities reflects Li Lu’s global lens, seeking value wherever it can be found.
Top Holdings Analysis: Tech Giants and Strategic Reductions
The portfolio’s backbone is a select group of large-cap leaders and financials, with several notable changes this quarter. The largest move was a significant reduction in BK OF AMERICA CORP 18.4%, trimmed by 24.66%, signaling a shift away from U.S. banking exposure. Meanwhile, Li Lu initiated a substantial new position in PDD Holdings Inc. 17.9%, reflecting conviction in Chinese e-commerce growth.
Tech remains a core theme, with dual stakes in Alphabet Inc. 16.7% and Alphabet Inc. 16.2%, both unchanged, demonstrating a belief in the resilience and innovation of the search giant. Berkshire Hathaway Inc. (BRK-B) 16.2% continues as a foundational holding, unchanged this quarter, reflecting trust in Warren Buffett’s stewardship.
Regional banking exposure is maintained through EAST WEST BANCORP INC 10.4%, with no change, suggesting selectivity in financials. Energy is represented by Occidental Petroleum Corporation 2.3%, while Sable Offshore Corp. 1.1% and Apple Inc. 0.8% round out the portfolio with smaller allocations, both unchanged.
Key Holdings (Q2’2025): - BK OF AMERICA CORP (18.4%, Reduce 24.66%) - PDD Holdings Inc. (17.9%, Buy) - Alphabet Inc. (16.7%, No change) - Berkshire Hathaway Inc. (BRK-B) (16.2%, No change) - Alphabet Inc. (16.2%, No change) - EAST WEST BANCORP INC (10.4%, No change) - Occidental Petroleum Corporation (2.3%, No change) - Sable Offshore Corp. (1.1%, No change) - Apple Inc. (0.8%, No change)
What the Portfolio Reveals About Current Strategy
- Concentration in Quality: Li Lu’s portfolio is a masterclass in concentrated bets on high-quality businesses, with the top five positions representing over 85% of assets.
- Global Diversification: The mix of U.S. and Chinese equities—especially the new buy in PDD Holdings—shows a willingness to seek value across borders.
- Selective Financial Exposure: The sharp reduction in Bank of America, paired with a steady position in East West Bancorp, suggests nuanced risk management in the financial sector.
- Tech Leadership: Alphabet’s dual share classes remain core, highlighting confidence in long-term tech innovation.
- Long-Term Orientation: With an average holding period of 12 quarters, Himalaya Capital’s approach favors compounding and patience over frequent trading.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| BK OF AMERICA CORP | $493.6M | 18.4% | Reduce 24.66% |
| PDD Holdings Inc. | $482.3M | 17.9% | Buy |
| Alphabet Inc. (GOOGL) | $448.2M | 16.7% | No change |
| Berkshire Hathaway Inc. (BRK-B) | $436.1M | 16.2% | No change |
| Alphabet Inc. (GOOG) | $434.8M | 16.2% | No change |
| EAST WEST BANCORP INC | $280.4M | 10.4% | No change |
| Occidental Petroleum Corporation | $61.6M | 2.3% | No change |
| Sable Offshore Corp. | $29.5M | 1.1% | No change |
| Apple Inc. | $22.7M | 0.8% | No change |
This table underscores the extreme concentration of Li Lu’s portfolio, with nearly 85% allocated to just five positions. The significant reduction in Bank of America and the new buy in PDD Holdings mark the most notable shifts, while the rest of the portfolio remains stable—demonstrating a blend of conviction and tactical adjustment.
Investment Lessons from Li Lu’s Value Approach
- Concentrate on What You Know: Li Lu’s willingness to allocate large portions of capital to a handful of businesses reflects deep research and conviction.
- Global Value Hunting: Don’t limit your search for value to one geography; opportunities exist worldwide.
- Long-Term Patience: Holding periods of three years or more allow compounding to work and reduce the impact of short-term volatility.
- Selective Risk Management: Adjusting exposure in sectors like financials shows the importance of active risk assessment.
- Quality Over Quantity: Fewer, better ideas can outperform a sprawling portfolio of mediocre picks.
Looking Ahead: What Comes Next?
With $2.7 billion deployed and a modest turnover, Himalaya Capital is well-positioned to capitalize on both U.S. and Chinese growth stories. The recent buy in PDD Holdings suggests Li Lu sees compelling value in Chinese consumer tech, while the reduction in Bank of America may reflect caution on U.S. financials amid evolving macro conditions. Investors should watch for further moves in technology and emerging markets, as well as any new positions that could signal shifts in strategy.
FAQ about Li Lu’s Himalaya Capital Portfolio
Q: Why did Li Lu reduce his position in Bank of America so sharply?
The 24.66% reduction likely reflects concerns about U.S. banking sector risks or a reallocation toward higher-conviction ideas like PDD Holdings.
Q: How concentrated is Himalaya Capital’s portfolio?
Extremely concentrated—100% of assets are in the top ten holdings, with the top five accounting for nearly 85%.
Q: What is Li Lu’s approach to risk management?
He manages risk through deep research, selective sector exposure, and by maintaining long holding periods to ride out volatility.
Q: Which sectors does Himalaya Capital favor?
Technology (Alphabet, PDD), financials (Bank of America, East West Bancorp), and energy (Occidental Petroleum) are key themes.
Q: How can I track Li Lu’s portfolio changes?
ValueSense provides real-time tracking of superinvestor portfolios using quarterly 13F filings, though note the 45-day reporting lag. Visit Himalaya Capital’s portfolio for updates.
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