Li Lu's Himalaya Capital Q2 2026: Adding PDD, Dumping Bank of America

Li Lu is one of the quietest names in the 13F universe. The Himalaya Capital founder, often described as the "Chinese Warren Buffett" and a longtime Charlie Munger protégé, runs a deliberately tiny portfolio and trades it rarely. That is exactly why a quarter with eight changes is worth reading closely. Himalaya's Q2 2026 13F, filed on August 14, showed two additions and six full exits, a rare burst of activity for a fund that normally changes very little.

What Himalaya Actually Did in Q2

According to the Q2 2026 filing data, the largest addition was PDD Holdings (PDD), where Himalaya bought roughly 6.15 million additional shares. The only other add was Berkshire Hathaway (BRK-B), up about 210,000 shares.

On the other side, Himalaya completely exited six positions: Bank of America (about 3.0 million shares), H&R Block (about 1.6 million), Occidental Petroleum (about 1.47 million), Moody's (about 118,000), S&P Global (about 121,000) and MSCI (about 19,000).

You can browse the full holdings and changes for this and other concentrated managers on the InvestorLens investors page.

The Bank of America Exit Is the Headline

Bank of America was long a signature position in the Himalaya portfolio, and it has also been a Berkshire Hathaway staple. Seeing a concentrated, long-horizon investor exit entirely is a different signal from a hedge fund trimming a trade. Li Lu does not rotate for short-term reasons. A full exit usually means one of two things: the original thesis has played out, or the capital has found a better home.

Pair that with the exit of Moody's, S&P Global and MSCI, and the pattern looks less like a bet against one bank and more like a step back from financial-services and ratings-and-data franchises as a group. Those businesses are classic "toll booth" compounders, so the move is notable. We have written before about how funds are treating the financial sector in our look at the quiet financials rotation in Q2.

Why PDD Stands Out

PDD is the owner of Temu and Pinduoduo, a China-based e-commerce platform. Adding more than six million shares makes it the biggest move of the quarter for Himalaya. Li Lu has long been willing to hold Chinese businesses that most US institutions avoid, and 13F data shows how lonely that position can be. Many large US funds have been reducing China exposure, a theme we covered in posts on Tepper and Burry, so Himalaya is leaning against the crowd here.

One caution applies. A 13F only tells you what was held at quarter-end and says nothing about price paid, intent or hedges. Chinese ADRs also carry regulatory and delisting risks that do not show up in a filing. Treat the move as a data point about conviction, not a recommendation.

Berkshire as a Parking Spot

The modest addition to Berkshire Hathaway is easy to overlook, but it fits a pattern. Berkshire is a diversified, cash-rich holding company, and for some investors it works as a lower-volatility home for capital. Pairing a PDD add with a Berkshire add suggests a barbell: one very high-conviction, higher-risk growth position next to a steady compounder. You can see where else Berkshire appears across portfolios on the InvestorLens overlap page.

How to Use This Signal

Concentrated managers like Li Lu are where 13F data is most informative, because every position is a deliberate decision. A few practical takeaways:

• Exits matter more than adds for concentrated funds. Six exits in one quarter is a bigger story than any single purchase.
• Check the crowd. If few other funds hold PDD, Himalaya's move is contrarian. Use the flow page to see whether others are buying or selling the same names.
• Zoom out to sector level. Combined exits of banks, ratings agencies and data providers hint at a thesis about the sector, not just one stock. The macro consensus view helps show whether that view is shared.
• Remember the lag. These holdings are as of June 30. A lot can change by the time the filing appears.

The Bottom Line

Himalaya Capital rarely makes headlines, and Q2 2026 was an unusually active quarter: a big bet on PDD, a small add to Berkshire, and a clean exit from Bank of America and five other holdings. Whether Li Lu is early or wrong on PDD will take years to answer, but the filing offers a useful reminder that the most informative 13F signals often come from the smallest, quietest portfolios.

---

Data sourced from public SEC 13F filings. Educational research only — not investment advice.