Hedge Fund Takes New Position in Chinese Data Center Stock, According to Latest SEC Filing
Key Points
Broad Peak bought 445,050 shares of GDS Holdings; estimated transaction value was $19.08 million based on quarterly average price.
The quarter-end value of the new GDS Holdings stake was $17.93 million, reflecting valuation shift including price movements.
This trade represented a 3.87% change in reportable 13F assets under management.
Post-trade, the fund held 445,050 shares valued at $17.93 million (3.64% of AUM).
GDS Holdings does not rank among the fund’s top five holdings after the trade.
- 10 stocks we like better than GDS Holdings ›
On April 23, 2026, Broad Peak Investment Advisers Pte Ltd disclosed a new position in GDS Holdings(NASDAQ:GDS), acquiring 445,050 shares in an estimated $19.08 million trade based on the quarterly average price.
What happened
According to an SEC filing dated April 23, 2026, Broad Peak Investment Advisers Pte Ltd initiated a new position in GDS Holdings by purchasing 445,050 shares. The estimated investment, based on the average share price for the quarter, was $19.08 million. The quarter-end market value of the stake was $17.93 million, capturing both trading activity and price changes.
What else to know
This was a new position for the fund and represented 3.64% of its reportable 13F assets under management at quarter-end.
Top holdings after the filing:
- NYSE:U: $57.98 million (11.8% of AUM)
- NASDAQ:AVGO: $57.26 million (11.6% of AUM)
- NASDAQ:NVDA: $56.29 million (11.4% of AUM)
- NASDAQ:LITE: $51.71 million (10.5% of AUM)
- NYSE:ORCL: $51.05 million (10.4% of AUM)
As of April 22, 2026, GDS Holdings shares were priced at $43.16, up 92.7% over the past year, outperforming the S&P 500 by 57.7 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.59 billion |
| Net income (TTM) | $131.76 million |
| Market capitalization | $8.39 billion |
| Price (as of market close April 22, 2026) | $43.16 |
Company snapshot
- Offers colocation services, managed hosting, managed cloud, and consulting, with primary revenue from data center operations in China.
- Operates a recurring revenue model by leasing critical IT infrastructure and services to enterprise and cloud clients.
- Main customers include cloud service providers, large internet companies, financial institutions, and multinational corporations.
GDS Holdings is a leading developer and operator of high-performance data centers in China, serving technology-driven enterprises and cloud platforms. The company leverages a scalable infrastructure strategy to deliver mission-critical IT services, supporting clients' digital transformation and business continuity needs. Its focus on large-scale, carrier-neutral facilities positions it as a key partner for organizations seeking reliable, secure data solutions.
What this transaction means for investors
Broad Peak Investment Advisers, a hedge fund based in Singapore, recently disclosed the purchase of approximately $19 million of GDS Holdings stock during the first quarter (the three months ending on March 31, 2026). Here are some key takeaways for investors.
First, GDS stock has performed very well over the last three years. Since 2023, shares have advanced by 168%, equating to a compound annual growth rate (CAGR) of 38.9%. That’s significantly better than the benchmark S&P 500, which has delivered a total return of 79% over the same period with a CAGR of 21.5%.
Yet, while GDS’s performance has been undeniably impressive, the stock’s valuation may give some investors pause. GDS stock now trades at a price-to-sales (P/S) ratio of 5.9x, near a three-year high. Indeed, GDS stock’s current P/S ratio is more than twice its three-year average of 2.9x.
At any rate, many growth-oriented investors may want to consider GDS stock given its exposure to the red-hot Chinese data center market. However, given its lofty valuation, investors should proceed with caution.
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Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Broadcom, Lumentum, Nvidia, Oracle, and Unity Software. The Motley Fool has a disclosure policy.
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