Top Chinese Hedge Funds Reshuffle Portfolios in Q1: AI Tech Stock Holdings Show Clear Divergence

Q1 Reports Reveal Latest Moves by Top Hedge Funds

As listed companies completed the disclosure of their Q1 2026 earnings reports, the portfolio reshuffling strategies of several ten-billion-yuan-scale private fund managers have come to light. Notably, multiple tech stocks closely tied to the AI industry chain appeared on the rebalancing lists, suggesting subtle shifts in how top fund managers view AI sector investments.

Gaoyi Assets: Deng Xiaofeng Trims Display Panel Giants, Feng Liu Exits Hikvision

As one of China's most influential mega private funds, the moves by Gaoyi Assets' two star portfolio managers have drawn significant market attention.

Deng Xiaofeng chose to reduce his positions in BOE Technology and TCL Technology during Q1. Both companies have been actively expanding into AI display technologies in recent years — BOE has been pushing forward in the AI+IoT space, while TCL Technology has ramped up investment in AI-powered large screens and smart displays. Deng's reduction may reflect his cautious view on short-term cyclical fluctuations in the display panel industry.

Feng Liu's moves also raised eyebrows — he trimmed his stake in Hikvision, the leading AI-powered security company, while contrarian-adding to Ruifeng New Materials. As a benchmark enterprise in China's AI vision sector, Hikvision has been continuously investing in R&D across large language models and intelligent IoT. Feng Liu's decision to reduce his holdings at this juncture may suggest he believes the AI security segment's short-term valuation is already fairly priced. Meanwhile, his increased position in Ruifeng New Materials reflects his signature contrarian investment style — seeking undervalued targets when market sentiment is subdued.

Ningquan Assets and Ruijun Assets: Different Rebalancing Priorities

Ningquan Assets, helmed by Yang Dong, reduced its stake in Unilumin Technology during Q1 while buying into Haoxiangni. Unilumin has been expanding in LED smart displays and AI-enhanced lighting environments, and the reduction may be related to its earnings performance and valuation levels.

Dong Chengfei of Ruijun Assets chose to buy into Dinglong Corp and Jinhe Commercial Management. Dinglong Corp is a key player in China's electronic functional materials sector, with its positioning in semiconductor polishing pads and flexible display substrates closely aligned with AI computing infrastructure demand. The market has interpreted Dong's move as a forward-looking bet on the upstream materials segment of the AI supply chain.

Behind the Reshuffling: Is the AI Tech Investment Thesis Evolving?

Overall, this round of portfolio rebalancing by top hedge funds reveals several notable characteristics:

First, AI hardware and terminal stocks face profit-taking. Companies like Hikvision and BOE Technology, which had posted significant prior gains on the AI application side, were trimmed by multiple prominent fund managers, suggesting some institutional investors believe short-term valuations in these names have become stretched.

Second, upstream materials and infrastructure plays are gaining traction. The additions to electronic functional materials companies like Dinglong Corp indicate that smart money is rotating toward less crowded upstream segments of the AI supply chain, seeking better risk-reward opportunities.

Third, contrarian positioning remains a hallmark strategy. Veteran managers like Feng Liu continue to demonstrate their willingness to go against prevailing market sentiment, building positions in overlooked or out-of-favor names while trimming popular consensus trades.