Li Auto (NASDAQ:LI) stock has been one of the better-performing Chinese electric vehicle (EV) names this year. Down marginally for 2022, shares are doing a heck of a lot better than the overall Nasdaq. Accordingly, there’s continued interest around LI stock as a potential “sturdy” growth bet in otherwise uncertain times.
Institutional investors seem to agree. In particular, Philippe Laffont’s Coatue Management just added to his position in LI stock in a big way this past quarter, more than doubling the stake.
According to a recent 13-F filing, Coatue added more than 610,000 shares of LI this past quarter. Now, the market seems to be viewing this vote of confidence positively; shares are down, but not nearly as much as some of the EV company’s peers.
Let’s dive into what investors may want to make of this recent move.
LI Stock Continues to Outperform, Driven By Institutional Interest
Of course, this position is still a relatively small stake for Coatue Management. The company’s LI holdings — which amount to around $34 million as of the date of the filing — only account for 0.41% of the fund. However, the investment is still a substantial increase from the small nibble the fund made in the past for Li Auto.
Other moves into higher-growth tech stocks have also piqued investors’ interest lately. Coatue is a massive fund with more than $70 billion in assets under management. Because of that, where it decides to deploy capital matters to investors a great deal.
So, the fact Coatue has picked up Li Auto as a growth holding is actually quite notable. Investors looking at the high-growth Chinese EV market may be taking cues from this move. LI stock will undoubtedly be interesting to watch from here.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
