Matthews Just Slashed Its Futu Position -- Here’s Why That Matters
Key Points
Matthews sold 82,183 shares of Futu Holdings; estimated trade size was $12.78 million (based on quarterly average price).
Quarter-end Futu position value decreased by $15.38 million, reflecting both trading and share price movement.
The change equals 5.18% of Matthews International Capital Management’s 13F AUM.
The fund still held 68,723 Futu shares worth $9.40 million after the trade.
Futu stake now accounts for 3.81% of fund AUM, placing it outside the fund’s top five holdings.
- 10 stocks we like better than Futu ›
What happened
According to a Securities and Exchange Commission filing dated May 4, 2026, Matthews International Capital Management sold 82,183 shares of Futu Holdings (NASDAQ:FUTU), with the estimated transaction value totaling $12.78 million based on the quarterly average share price. The fund’s quarter-end Futu position was valued at $9.40 million, down by $15.38 million from the previous period, reflecting both trading activity and price changes.
What else to know
- The sale reduced the Futu stake to 3.81% of reportable AUM, from 7.5% in the previous quarter; the position is no longer among the fund’s top five holdings.
- Top five holdings after the filing:
- NYSE:YUMC: $27.07 million (10.98% of AUM)
- NYSE:TSM: $21.12 million (8.57% of AUM)
- NASDAQ:PDD: $20.33 million (8.25% of AUM)
- NASDAQ:LEGN: $16.75 million (6.8% of AUM)
- NYSE:CYD: $12.48 million (5.06% of AUM)
- As of May 4, 2026, Futu shares were priced at $156.04, up 58.26% over the past year, outperforming the S&P 500 by 26.80 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.92 billion |
| Net income (TTM) | $1.45 billion |
| Dividend yield | 1.66% |
| Price (as of market close May 4, 2026) | $156.04 |
Company snapshot
- Offers digitalized securities brokerage, margin financing, and wealth management product distribution through the Futubull and Moomoo platforms.
- Generates revenue primarily from brokerage commissions, margin financing interest, and distribution of wealth management products.
- Serves retail and institutional investors in Hong Kong and international markets, targeting individuals seeking online investing and trading solutions.
Futu Holdings Limited is a leading digital brokerage and wealth management platform with a strong presence in Hong Kong and an expanding international reach. The company leverages technology to deliver seamless, data-driven financial services, focusing on user experience and product breadth. Its integrated platforms and active online investor community provide a competitive edge in the rapidly evolving capital markets sector.
What this transaction means for investors
Matthews International’s decision to sell off a large portion of its stake in Futu Holdings may worry investors. However, this move should be considered within a broader context.
Futu has had a strong run over the past year. Shares are up more than 58%. The sale may reflect profit-taking, as asset managers often trim positions that have outperformed. That may seem counterintuitive, but it allows them to lock in gains and manage risk over the long term.
Matthews reduced several of its other high-growth holdings during the quarter as well. Its total AUM declined by more than $80 million during the quarter, making the Futu sale just a small part of the broader reduction. That’s more than 25% of its Q4 2025 AUM.
Context matters. Matthews' reduction doesn’t necessarily mean that Futu’s underlying business is at risk. Investors focused on the long term may want to focus on whether the company can continue to expand its platform and grow its user base, rather than on the actions of one institution.
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Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool recommends Legend Biotech and recommends the following options: long January 2027 $47.50 calls on Yum China and short January 2027 $52.50 calls on Yum China. The Motley Fool has a disclosure policy.
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