PDD Holdings Inc. (PDD) Slid Amid Investment in E-Commerce Support and External Challenges

Artisan Partners, an investment management company, released its “Artisan Developing World Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Investor Class) returned 14.40% compared to 11.99% for the MSCI Emerging Markets Index. The Artisan Developing World Fund has returned 192.04% cumulatively, since June 30, 2015, compared to 60.03% for the index. Equities rose in the quarter despite uncertainty around US trade initiatives, strife in longer-dated bond markets, shifts in global currency preferences, and flash points in geopolitical conditions. US markets outperformed international markets in local currency terms for the same period. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Artisan Developing World Fund highlighted stocks such as PDD Holdings Inc. (NASDAQ:PDD). PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that operates Pinduoduo and Temu platforms. The one-month return of PDD Holdings Inc. (NASDAQ:PDD) was 3.05%, and its shares lost 23.00% of their value over the last 52 weeks. On July 8, 2025, PDD Holdings Inc. (NASDAQ:PDD) stock closed at $106.31 per share, with a market capitalization of $150.923 billion.

Artisan Developing World Fund stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its second quarter 2025 investor letter:

"Bottom contributors to performance for the quarter included Meituan, Chinese e-commerce company PDD Holdings Inc. (NASDAQ:PDD), KE Holdings (BEKE), LVMH, Kanzhun (BOSS). PDD fell due to ongoing investment in domestic e-commerce merchant support and an increasingly complicated external environment related to tariffs and ADR delisting risk."

PDD Holdings Inc. (NASDAQ:PDD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 87 hedge fund portfolios held PDD Holdings Inc. (NASDAQ:PDD) at the end of the first quarter, compared to 85 in the previous quarter. In the first quarter of 2025, PDD Holdings Inc.'s (NASDAQ:PDD) revenues increased 10% year-over-year to RMB95.7 billion While we acknowledge the potential of PDD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. 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 PDD Holdings Inc. (NASDAQ:PDD) and shared the list of best foreign stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 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.