Company Overview - KE Holdings Inc. is a leading real estate services provider in China, utilizing technology to connect buyers, sellers, and agents through its Beike and Lianjia platforms [5] - The company operates a hybrid online-offline business model, generating revenue primarily from transaction commissions, service fees, and value-added offerings [7] - KE Holdings serves home buyers, sellers, renters, and real estate agents across China, targeting both individual consumers and institutional clients in the residential property sector [7] Financial Performance - As of the latest report, KE Holdings had a market capitalization of $18.86 billion and revenue of $14.52 billion for the trailing twelve months (TTM) [4] - The company reported net income of $549.10 million for the TTM [4] - In the third quarter, KE Holdings generated $3.2 billion in net revenue, reflecting a 2% year-over-year increase, although net income decreased by 36% year-over-year to $105 million [8] Investment Activity - Perseverance Asset Management International initiated a new position in KE Holdings, acquiring 659,849 shares valued at approximately $12.54 million [1][2] - The fund's total reportable positions include 23 holdings with $840.49 million in U.S. equity assets under management as of September 30 [2] Market Context - KE Holdings' share price was $16.22, down 12% over the past year, underperforming the S&P 500, which increased by about 15% during the same period [3] - The company ended the quarter with approximately $7.8 billion in cash and equivalents, and it repurchased $281 million of shares in the quarter, totaling about $675 million year to date, reducing its share count by roughly 3% [9] Strategic Positioning - The investment in KE Holdings reflects a focus on durable cash flow and optionality in a challenging market environment [1] - The company is seen as having a defensible position in the competitive housing market, supported by its scale and comprehensive service portfolio [5][10]