Li Lu - Himalaya Capital Management Investment Strategy (Jun 30, 2025)
As of Jun 30, 2025, the Himalaya Capital Management portfolio managed by Li Lu demonstrates a sophisticated investment approach with 10 positions and an average holding period of 343 quarters. The strategy focuses on Communication Services, Consumer Cyclical, Energy, Financial Services, Technology sectors with a typical position size of 14.1% of the portfolio.
The portfolio's risk management approach includes a maximum position size of 14.08% and sector diversification of 5%, exemplified by the case study of BK OF AMERICA CORP (BAC). This strategic framework provides insights into Li Lu's investment philosophy, risk management practices, and long-term value creation approach.
Investment Strategy Metrics
Key metrics revealing investment style, risk management, and performance characteristics
| Metric | Value | Category | Description |
|---|---|---|---|
| Holding Period | 11.4 months | Style | Average duration positions are maintained |
| Position Count | 10 | Style | Number of active positions in portfolio |
| Position Size | 14.1% | Risk | Typical allocation per position |
| Win Rate | 40.6% | Performance | Percentage of profitable positions |
| Average Return | -4.7% | Performance | Mean return across positions |
| Sharpe Ratio | -0.23 | Performance | Return per unit of risk taken |
Investment Case Study: BK OF AMERICA CORP (BAC)
3/31/2020 - 11/11/2025
Performance Metrics
Total Return: -11.12%
Holding Period: 2051 days
Max Position Size: $577,819,995.00
Position Weight: 26.19%
Key Events
Investment Thesis
Entry Context: Initial position established based on fundamental analysis
Sector Conditions: Favorable market conditions in the sector
- Market volatility
- Sector-specific risks
Key Learnings
- Position sizing is critical for portfolio management
- Important to monitor sector exposure