KE Holdings (BEKE) Beats Earnings Expectations Amid Property Slump

Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that released its fourth-quarter 2025 investor letter for the “Baird Chautauqua International and Global Growth Fund”. A copy of the letter can be downloaded here. Global equities finished 2025 strongly, with international markets delivering their widest outperformance versus U.S. equities since the Global Financial Crisis, aided by a weaker dollar and improving trade conditions. In Q4 2025, the Baird Chautauqua International Growth Fund returned +0.11%, lagging the MSCI ACWI ex-U.S. Index’s +5.05%, while the Global Growth Fund gained +4.18%, outperforming its MSCI ACWI Index® ND’s +3.29%, as value and cyclical leadership weighed on growth-oriented portfolios. Despite near-term headwinds from sector rotations and Greater China profit-taking, the fund remains focused on high-quality businesses with strong cash flows and balance sheets, supported by attractive international valuations and a more favorable macro backdrop heading into 2026. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Baird Chautauqua International and Global Growth Funds highlighted stocks such as KE Holdings Inc. (NYSE:BEKE). KE Holdings Inc. (NYSE:BEKE) operates China’s leading integrated online and offline real estate platform, connecting buyers, sellers, and agents through its Lianjia and Beike networks. The one-month return of KE Holdings Inc. (NYSE:BEKE) was modest based on the recent trading range, and its stock has experienced moderate fluctuations over the past 52 weeks. On January 26, 2026, KE Holdings Inc. (NYSE:BEKE) stock closed at approximately $18.05 per share, with a market capitalization of about $20.85 billion.

Baird Chautauqua International and Global Growth Funds stated the following regarding KE Holdings Inc. (NYSE:BEKE) in its Q4 2025 investor letter:

"KE Holdings Inc. (NYSE:BEKE) reported in-line revenues and better-than-expected earnings for 3Q25. Weakness in China’s property market continues to weigh on its market outlook, but operational efficiency and AI integration should lead to significant margin improvements in 2026."

KE Holdings Inc. (NYSE:BEKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held KE Holdings Inc. (NYSE:BEKE) at the end of the third quarter, which was 33 in the previous quarter. While we acknowledge the risk and potential of KE Holdings Inc. (NYSE:BEKE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered KE Holdings Inc. (NYSE:BEKE) and shared the list of best Asian stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.