North of South Capital Exits Vipshop Position to Pivot Toward Other Emerging Market Assets

North of South Capital LLP has completely exited its position in Vipshop Holdings (VIPS), according to a recent SEC filing. The London-based emerging markets fund sold 2,262,683 shares, a transaction valued at approximately $38.5 million based on first-quarter average closing prices. The liquidation represents a total exit from a position that previously accounted for roughly 3.6% of the firm's 13F portfolio. Rather than a signal of distress, the move appears to be a strategic reallocation. The fund has simultaneously increased its exposure to other emerging market assets, specifically the Argentine energy giant YPF, as well as JD.com and Full Truck Alliance. Vipshop's fundamentals remain mixed. For the fourth quarter of 2025, the company reported revenue of RMB 32.5 billion, a slight decrease from RMB 33.2 billion in the prior year. However, profitability improved, with net income rising to RMB 2.6 billion from RMB 2.4 billion and operating margins expanding to 8.9%. To attract investors amid a competitive Chinese retail landscape, Vipshop management has committed to returning at least 75% of non-GAAP net income to shareholders, with planned dividends of approximately $300 million for 2026. While the stock has gained nearly 30% over the last year, it continues to trail the S&P 500.