Contrarius Loads Up On Baidu Stock With Over 743,000 Shares Bought

Contrarius Group Holdings Ltd increased its stake in Baidu (NASDAQ:BIDU) by 743,205 shares in the third quarter, adding to the position size by an estimated $104.77 million as of the November 12, 2025, SEC filing.

What happened

According to a filing with the U.S. Securities and Exchange Commission dated November 12, 2025, Contrarius disclosed a significant increase in its stake in Baidu during the third quarter. The fund reported owning 891,749 shares, up from 148,544 shares in the previous quarter, with the position now valued at $117.51 million.

What else to know

• This was a buy, raising the Baidu stake to 5.32% of Contrarius’s $2.21 billion in reportable U.S. equity assets as of September 30, 2025.

Top holdings after the filing:

• NASDAQ:TSLA: $236,911,000 (10.72% of AUM)
• NASDAQ:WBD: $230,516,000 (10.44% of AUM)
• NASDAQ:PSKY: $186,673,000 (8.45% of AUM)
• NASDAQ:FOX: $135,929,000 (6.15% of AUM)
• NASDAQ: BIDU: $117,505,000 (5.32% of AUM)

• As of November 11, 2025, shares of Baidu were priced at $131.95, down 8.9% from the 52-week high.
• Baidu’s stock returned 49.47% over the past year, outperforming the S&P 500 by 34.13 percentage points.

Company Overview

Company Snapshot

• Offers online marketing, cloud services, and AI-driven products through Baidu Core, as well as online video entertainment via iQIYI.
• Generates revenue primarily from digital advertising, cloud computing, and subscription-based content platforms.
• Serves businesses seeking digital marketing and cloud solutions, and consumers in China accessing search, video, and entertainment content.

Baidu, Inc. is a leading internet technology company in China, recognized for its dominant search engine, diversified cloud offerings, and expanding AI initiatives. The company leverages its strong technological foundation and extensive user base to drive growth across digital advertising, cloud computing, and online entertainment. Its integrated platform and focus on innovation position it as a key player in China's evolving digital ecosystem.

Foolish take

The Baidu addition was one of Contrarius's more notable acquisitions in the third quarter of 2025. Its 500% increase in Baidu shares means it is now the fund's fifth-largest holding, eclipsed only by the 1,285% increase in shares in Meta Platforms. Still, since the Meta stake is worth only around $63 million, the Baidu purchase is probably more significant.

Moreover, the Baidu purchase reflects Contrarius’s preference for stocks with some kind of tie to the tech sector. The difference now is that the fund may be developing a higher comfort level with Chinese stocks.

Over the same period, Contrarius’s stake in Alibaba also grew 135% quarter over quarter, but since Alibaba is its 13th largest position, the fund apparently has a stronger conviction in Baidu.

Furthermore, valuation may have also influenced this investment. Admittedly, a $2.3 billion impairment cost in Q3 temporarily reduced its profitability, raising its P/E ratio to 41.

However, the more reasonable forward P/E of 17 does not reflect such one-time charges, and assuming investment conditions remain favorable, Baidu has the potential to become a major source of gains for the fund.

Glossary

Stake: The ownership interest or shares held in a company by an investor or fund.
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
13F reportable assets: U.S. equity securities that institutional investment managers must disclose quarterly to the SEC on Form 13F.
Reportable AUM: The portion of a fund’s total assets that must be disclosed in regulatory filings, typically U.S. equities.
Filing: An official document submitted to a regulatory authority, such as the SEC, disclosing financial or ownership information.
Buy (in fund context): The act of increasing a fund’s position in a particular security or company.
Top holdings: The largest investments in a fund’s portfolio, usually ranked by market value.
52-week high: The highest price at which a security traded during the past year.
Outperforming: Achieving a higher return compared to a benchmark or index over a specific period.
TTM: The 12-month period ending with the most recent quarterly report.
Cloud computing: Delivery of computing services like storage and processing over the internet instead of on local servers.
Digital advertising: Promotion of products or services through online channels such as search engines, websites, and social media.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Baidu, Meta Platforms, Tesla, and Warner Bros. Discovery. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.