Tiger Pacific Capital Exits New Oriental Education Stake

Tiger Pacific Capital has fully divested its position in New Oriental Education (NYSE: EDU), offloading 428,532 shares in a transaction valued at approximately $24.48 million. The move, disclosed in a mid-May SEC filing, marks a complete exit from the stock, which previously represented roughly 6% of the fund’s assets under management. This liquidation comes as New Oriental’s stock performance has lagged significantly, showing a 3% decline over the past year compared to the S&P 500’s 28% gain.

Despite the divestment, the move appears to be a strategic portfolio reallocation rather than a loss of faith in the Chinese education sector. Notably, Tiger Pacific Capital has maintained a massive position in TAL Education (NYSE: TAL), which currently accounts for over 42% of the fund's total assets. By consolidating its exposure into TAL, the fund is signaling a preference for that specific vehicle over New Oriental, even as the latter continues to demonstrate strong operational health.

From a fundamental perspective, New Oriental’s recent financial performance remains robust. The company reported a 20% year-over-year revenue increase to $1.42 billion in its most recent quarter, with net income surging by 45%. The firm is actively expanding its footprint in adult education and overseas test preparation while integrating AI into its service offerings. For investors, this transaction highlights the importance of looking beyond individual company metrics to understand how institutional managers balance sector-specific risks and preferences within their broader portfolios.