Why a Fund Walked Away From This $20 Million China Logistics Bet After a 24% Stock Drop
Key Points
Cederberg Capital sold all of its 1,828,900 shares of Full Truck Alliance last quarter.
The net position value decreased by roughly $20 million quarter-over-quarter.
The stake was previously more than 5% of fund AUM as of December 2025.
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On May 15, 2026, Cederberg Capital disclosed in an SEC filing that it sold out of Full Truck Alliance (NYSE:YMM) last quarter.
What happened
According to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Cederberg Capital Ltd sold all 1,828,900 shares of Full Truck Alliance during the first quarter. The net position value declined by $20 million as a result of the exit.
What else to know
- Top holdings after the filing:
- NASDAQ: NTES: $40.26 million (21.6% of AUM)
- NASDAQ: PDD: $39.15 million (21.0% of AUM)
- NASDAQ: ATAT: $33.15 million (17.8% of AUM)
- NYSEMKT: SVM: $23.83 million (12.8% of AUM)
- NASDAQ: ACMR: $23.58 million (12.7% of AUM)
- As of Friday, Full Truck Alliance shares were priced at $8.82, down 24% over the past year and well underperforming the S&P 500, which is instead up about 28%.
Company overview
| Metric | Value |
|---|---|
| Price (as of Friday) | $8.82 |
| Market capitalization | $9 billion |
| Revenue (TTM) | $1.83 billion |
| Net income (TTM) | $645.43 million |
Company snapshot
- Full Truck Alliance provides a digital freight platform offering freight listing, matching, brokerage, online transaction services, and value-added solutions such as credit, insurance, toll collection, and energy services.
- The firm operates a transaction-based business model, generating revenue through freight brokerage fees, value-added service charges, and technology-driven platform fees.
- It serves shippers and truckers across China, targeting enterprises and individual logistics providers seeking efficient freight matching and logistics solutions.
Full Truck Alliance is a leading digital freight platform in China, facilitating efficient connections between shippers and truckers nationwide. The company leverages technology to streamline logistics, offering a comprehensive suite of services that address multiple aspects of the freight transaction process. Its scale and integrated value-added offerings position it as a key player in China's evolving logistics and transportation sector.
What this transaction means for investors
Full Truck Alliance shares fell more than 20% during the first quarter alone amid broader skepticism surrounding Chinese tech stocks. However, the company's underlying business remained relatively healthy. First-quarter revenue increased 5.5% year over year to $413 million, while fulfilled orders climbed 14% to 55 million and average shipper monthly active users rose 13% to 3.11 million. Management said those gains reflected strengthening network effects across both shippers and truckers.
The quality of growth may be more important than the headline revenue figure. Transaction service revenue jumped 33% to $202 million, helping offset weakness in lower-value freight brokerage activity. Operating cash flow surged to $226 million from just $47 million a year earlier, and the company ended the quarter with roughly $4.7 billion in cash and investments.
For long-term investors, the key question is whether sentiment has become disconnected from fundamentals. Profit declined year over year, and management's guidance points to modest growth ahead, but the platform continues to gain users, process more freight, and generate significant cash.
Ultimately, long-term investors should remember that sometimes fund exits signal simply reflect a stock that tested investors' patience — and not necessarily a business that has broken down.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends NetEase. The Motley Fool has a disclosure policy.
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