Triata Capital Dumps Nearly 2M Shares of This AI Stock
Key Points
Sold 1,886,396 shares of GDS; estimated trade size $80.89 million.
Quarter-end position value decreased by $59.97 million, reflecting both trading and stock price changes.
Transaction represented 14.66% of Triata’s 13F reportable AUM.
Post-trade holding: 1,087,902 shares valued at $43.83 million.
GDS now accounts for 7.94% of 13F AUM, which places it outside the fund's top five holdings.
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Triata Capital Ltd reduced its stake in GDS Holdings Limited (NASDAQ:GDS), selling 1,886,396 shares in the first quarter for an estimated $80.89 million, according to the May 14, 2026 SEC filing. The transaction value is an estimate based on the quarter's average pricing.
GDS Holdings delivers data center and managed cloud solutions to enterprise clients across China, with a focus on long-term contracts.
What happened
According to the SEC filing dated May 14, 2026, Triata Capital Ltd reduced its position in GDS Holdings Limited by 1,886,396 shares during the first quarter. The estimated transaction value was $80.89 million, based on the average unadjusted closing price for the quarter. The fund ended the period with 1,087,902 shares, worth $43.83 million at quarter-end. The net position change, which includes trading and price movement, was a decline of $59.97 million.
What else to know
- Triata Capital Ltd’s GDS position now represents 7.94% of its 13F reportable AUM after the sale.
- Top holdings after the filing:
- NASDAQ: PDD: $212.77 million (38.6% of AUM)
- NASDAQ: VNET: $93.86 million (17.0% of AUM)
- NASDAQ: QFIN: $45.14 million (8.2% of AUM)
- NYSE: BABA: $29.54 million (5.4% of AUM)
- NASDAQ: ATAT: $20.80 million (3.8% of AUM)
- As of May 13, 2026, GDS shares were priced at $45.70, up 67.2% over the past year, outperforming the S&P 500 by 40.69 percentage points.
- The fund reported 14 positions and $551.82 million in 13F reportable U.S. equity assets as of March 31, 2026.
- GDS’s position was previously 12.6% of the fund’s AUM as of the prior quarter.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-05-13) | $45.70 |
| Market Capitalization | $8.91 billion |
| Revenue (TTM) | $1.68 billion |
| Net Income (TTM) | $140.92 million |
Company Snapshot
- GDS Holdings Limited provides colocation, managed hosting, managed cloud, and consulting services, primarily through the development and operation of data centers in China.
- The company generates revenue by leasing critical infrastructure, power, and IT services to enterprise clients, with a focus on long-term contracts and value-added managed services.
- Primary customers include cloud service providers, large internet companies, financial institutions, telecommunications firms, and multinational corporations operating in China.
GDS Holdings Limited is a leading provider of data center solutions in China, serving a diversified base of enterprise and technology clients. Its strategy emphasizes scalable infrastructure, high service reliability, and strong relationships with major cloud and internet platforms. The company leverages its extensive footprint and technical expertise to capture demand from digital transformation and cloud adoption trends in the region.
What this transaction means for investors
Triata Capital still has a sizable stake in this Chinese data center developer with over 1 million shares worth almost $44 million at the end of Q1. But it had nearly 3 million shares worth about $104 million in the previous quarter — so it was a major reduction.
GDS reported a strong first quarter, with revenue up 24% year-over-year, and 8% excluding one-time items. Net income climbed 247% but that was boosted by the sale of its DayOne data center assets. In addition, its adjusted EBITDA margin surged to 57.9% in the first quarter, up from 48.6% in the same quarter a year ago.
Further, the company maintained its guidance for the rest of the fiscal year.
The large selloff of GDS stock by Triata may have been related to the stockʻs high valuation. GDS stock has a forward P/E ratio of 64, but thatʻs down from a 344 P/E ratio at the end of the first quarter. In addition, its enterprise value/EBITDA ratio rose to around 15 at the end of the quarter. With the valuation rising, Triata management may have decided to take profits after a successful run. As of late January/early February, GDS stock had almost doubled in value from about $24 per share in early 2025 to nearly $48 per share in early 2026. However, it is not clear why exactly the firm reduced its shares in the stock.
Currently, GDS stock is trading at around $35 per share. In addition, the valuation has started to come back down, so investors should watch that.
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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
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