Fund Exits $24M Position in New Oriental, Retains Major Stake in TAL

Key Points

• The fund sold 428,532 shares of New Oriental Education, with an estimated transaction value of $24.48 million calculated using average quarterly prices. The position’s value at quarter‑end fell by $23.58 million, accounting for both trading activity and price fluctuations. At the end of the prior quarter, this holding represented approximately 6% of the fund’s assets under management.

What happened

According to an SEC filing dated May 15, 2026, Tiger Pacific Capital divested all 428,532 shares of New Oriental Education (NYSE:EDU) in the first quarter. The transaction value was estimated at $24.48 million, based on the average closing price for the period. The fund reported no remaining shares of the company at quarter‑end. The overall position change, incorporating price movements, resulted in a $23.58 million net reduction.

What else to know

• Top holdings after the filing:
  • NYSE: TAL: $90.71 million (42.3% of AUM)
  • NYSE: CPNG: $35.97 million (16.8% of AUM)
  • NASDAQ: PDD: $27.74 million (12.9% of AUM)
  • NYSE: NOAH: $18.62 million (8.7% of AUM)
  • NASDAQ: QFIN: $12.33 million (5.7% of AUM)
• As of Friday, EDU shares traded at $45.79, representing a roughly 3% decline over the past year and lagging the S&P 500, which has risen approximately 28% over the same period.

Company overview

Company Overview: Revenue for the trailing twelve months reached $5.4 billion, with net income of $420.1 million. The dividend yield stands at 2.5%, and the share price as of Friday was $45.79.

Company snapshot

• New Oriental Education & Technology Group offers private educational services including test preparation, after‑school tutoring, language training, and online education programs, with a focus on English and other foreign languages.
• The firm generates revenue through tuition fees from in‑person and online courses, educational materials, and consulting services for overseas studies.
• It targets students from K‑12 to college level, as well as individuals preparing for domestic and international exams in China.

New Oriental Education is a leading provider of private educational services in China, serving a broad student base through a network of schools, learning centers, and digital platforms. The company leverages its scale and diversified offerings to address a wide range of educational needs, from language acquisition to test preparation.

New Oriental continues to grow revenue, improve margins, and generate significant cash, ending the quarter with over $5.2 billion in cash, deposits, and short‑term investments. While the fund’s exit is noteworthy, the company’s operational momentum remains solid.

What this transaction means for investors

The sale reflects a strategic reallocation rather than a judgment on New Oriental’s business. The fund’s largest remaining holding is TAL Education, which comprises over 42% of its assets (excluding certain put options held in an S&P‑tracking ETF), suggesting the manager continues to favor a different vehicle for exposure to the education sector.

Contrary to concerns about weakness, New Oriental’s latest results demonstrate robust performance. In the third quarter, revenue increased nearly 20% year‑over‑year to $1.42 billion, operating income rose 45% to $180 million, and net income grew 45% to $127 million. Management pointed to expansion in overseas test preparation, adult education, and emerging initiatives, and noted continued integration of AI tools across its platform. The company also returned capital to shareholders, approving a $0.60 per ADS dividend and having repurchased approximately $184 million of stock under its buyback program as of April.

Consequently, the recent decline in the stock’s market price may not fully capture the company’s underlying strength. New Oriental continues to grow revenue, improve margins, and generate significant cash, ending the quarter with over $5.2 billion in cash, deposits, and short‑term investments. While the fund’s exit is noteworthy, the company’s operational momentum remains solid.

Should you buy stock in New Oriental Education & Technology Group right now?

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