Hillhouse Capital has reduced its holdings in LONGi Green Energy, incurring a loss of over 10 billion. This proves that institutions are just large retail investors if they choose the wrong direction.

​The fact has also once again demonstrated that everything is cyclical; institutions cannot resist the cycle and will also become victims.

​Hillhouse Capital has just announced that it reduced its holdings in LONGi Green Energy by no more than 37.8902 million shares in June. The share price at the time of reduction was not specified, but it was around 15 yuan. In December 2020, Hillhouse had acquired the increased issuance of LONGi at a price of 70 yuan/share, totaling 15.8 billion yuan for a 5.5% stake, holding it for 5 years and incurring a loss of over 10 billion, with a 60% decrease in market value.

​This is the largest loss I have seen from an institution's investment. Zhang Lei's investment style is actually quite aggressive; when the cycle is upward, he will definitely make a huge profit. However, once he chooses the wrong direction, he cannot escape significant losses. His book 'Value' serves as a monument to himself, but unfortunately, in hindsight, it is all about the opportunities and luck of the era, not about how great his investment ability is.