3 China Stocks Hedge Funds Love

04/10/2012 9:35 am EST

Focus: STOCKS

These China stocks are growing fast and have earned the attention of institutional buyers, writes Kapitall.com, and US investors can buy these shares with ease on the domestic exchanges.

Emerging market stocks are known to offer diversification benefits to portfolios made up of domestic stocks. For a closer look at US-traded stocks of companies in emerging markets, we ran a market screen specifically for stocks based on China, which is the largest emerging market country.

We began by screening for US-traded Chinese companies that have been outperforming the market over the last quarter and generated 20%+ quarterly returns.

We then screened for those with the confidence of institutional investors such as hedge fund managers, with net institutional purchases comprising over 5% of total share float for the last quarter.

Here are the results:

ChinaEdu Corporation (CEDU) provides educational services to the online degree programs of universities in the People’s Republic of China. Performance over the last quarter came in at 25.78%, and net institutional purchases in the current quarter are at 513,500 shares, which represent about 16.2% of the company’s float of 3.17 million shares.

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51job Inc. (JOBS) provides integrated human resource services primarily in the People’s Republic of China. Performance over the last quarter came in at 42.30%, and net institutional purchases in the current quarter are at 573,400 shares, which represent about 6.39% of the company’s float of 8.98 million shares.

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21Vianet Group Inc. (VNET) provides carrier-neutral Internet data center services in China. Performance over the last quarter came in at 25.68%, and net institutional purchases in the current quarter are at 4.1 million shares, which represent about 14.53% of the company’s float of 28.21 million shares.

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By the Staff at Kapitall.com

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