JD.com Loses Luster as Hedge Funds Backpedal Amid Slowing Growth
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E-commerce company has lost about $17 billion of value in 2016
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Number of shares sold short surged to a record high in June
JD.com Inc., the Chinese online retailer that a year ago was a favorite among hedge fund managers including Tiger Management LLC’s Julian Robertson, is quickly losing its allure.
The U.S.-traded stock has plunged 37 percent this year, wiping out almost $17 billion in market value. The number of shares borrowed for short selling touched a record on June 15 after more than doubling in less than a month. Hedge funds including Tiger and Lone Pine Capital have been bailing out.
The turnaround comes as China’s slowing economy and intensifying e-commerce competition crimp the company’s expansion. With sales growth flagging, investors are increasingly questioning when, or even if, the 12-year-old company will ever become profitable…
JD.com Loses Luster as Hedge Funds Backpedal Amid Slowing Growth
