Key Points
- North of South Capital, situated in London, divested 1,093,316 shares of Vipshop in the fourth quarter; the anticipated transaction value reached $21.04 million, based on average pricing during the period.
- The end-of-quarter valuation of the remaining Vipshop shares plummeted by $25.88 million, a decline attributable to both the executed sale and shifts in stock pricing throughout the quarter.
- Post-transaction, the fund’s holdings comprise 2,262,683 shares of Vipshop, valued at $40.03 million as of the close of the quarter.
On February 12, North of South Capital unveiled in a U.S. Securities and Exchange Commission (SEC) filing its decision to sell 1,093,316 shares of Vipshop Holdings Limited(NYSE: VIPS), an estimated transaction amounting to $21.04 million based on the quarter’s average pricing.
What occurred
According to a filing with the U.S. Securities and Exchange Commission on February 12, North of South Capital LLP executed the sale of 1,093,316 shares of Vipshop Holdings Limited in the fourth quarter.
The shares’ estimated worth was $21.04 million, derived from the average closing price during that quarter. The fund continues to hold 2,262,683 Vipshop shares, valued at $40.03 million at the quarter’s close.
Additionally, the value of its position saw a decrease of $25.88 million, influenced by both the trade and fluctuations in stock price.
Additional insights
Subsequent to the liquidation, Vipshop now constitutes 3.6% of North of South Capital LLP’s reportable assets, down from 6.3% in the previous quarter.
Current top five holdings include:
- NYSE: IBN: $220.18 million (19.8% of AUM)
- NYSE: TSM: $137.90 million (12.4% of AUM)
- NASDAQ: JD: $122.06 million (11.0% of AUM)
- NYSE: YMM: $116.40 million (10.5% of AUM)
- NYSE: PAAS: $111.27 million (10.0% of AUM)
As of February 11, Vipshop shares were trading at $17.56, reflecting a 20.9% increase over the prior year and outperforming the S&P 500 by 6.55 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close February 11, 2026) | $17.56 |
| Market Capitalization | $8.82 billion |
| Revenue (TTM) | $15.46 billion |
| Net Income (TTM) | $1.03 billion |
Company Snapshot
- Vipshop Holdings provides an extensive array of products encompassing apparel, cosmetics, footwear, home goods, electronics, culinary items, and consumer finance services, primarily via its online platforms, vip.com and vipshop.com.
- The enterprise employs a direct-to-consumer e-commerce framework, generating income from product sales, logistics, and supplementary services such as supply chain management and technological support.
- Targeting cost-conscious consumers in China, the company aims to provide branded products at discounted rates, emphasizing repeat clientele and strategic brand alliances.
Vipshop Holdings Limited stands as a prominent online discount retailer in China, capitalizing on a diversified product portfolio and a robust logistics network to cater to millions of consumers nationwide.
Its strategy hinges on cultivating deep supplier relationships and securing exclusive brand partnerships, thereby ensuring competitive pricing and fostering customer loyalty.
Vipshop’s scale and commitment to value-oriented consumers solidify its standing in the Chinese specialty retail landscape.
Implications for Investors
North of South Capital’s recent divestiture from Vipshop signals a strategic recalibration; however, the retention of a substantial $40 million stake suggests continued confidence in the company’s prospects.
Recently, Vipshop recorded third-quarter revenue of RMB21.4 billion, equivalent to $3.0 billion, marking a year-over-year increase of 3.4%. Additionally, net income attributable to shareholders surged by 16.8% to RMB1.2 billion, approximately $171.5 million.
On a broader scale, the portfolio is heavily weighted towards substantial emerging market and Asian tech equities, including significant positions in ICICI Bank ($220.18 million), Taiwan Semiconductor ($137.90 million), and JD.com ($122.06 million).
Within this context, Vipshop has transitioned from a primary holding to a more mid-tier investment within the Chinese consumer sector.
For long-term investors, the message is clear: Vipshop is generating substantial profits and cash flow, actively repurchasing shares, and projecting up to 5% revenue growth in the forthcoming quarter. This suggests that the recent stake reduction may be a tactical move rather than a reflection of underlying business fragility.
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