Hedge funds bought the dip in Chinese stocks last quarter after many technology names sold off amid political uncertainty, according to Goldman Sachs. U.S. hedge fund ownership of Chinese ADRs increased modestly during the third quarter after declining for four straight quarters, according to Goldman. At the start of the fourth quarter, 20% of equity hedge funds had a long position in at least one Chinese stock, the firm said. The Wall Street firm analyzed the holdings of 786 hedge funds with a combined $2.3 trillion of gross equity positions at the start of the fourth quarter, based on regulatory filings. Shares of Chinese companies listed in the U.S. dropped sharply last month after Beijing tightened President Xi Jinping’s grip on power, souring investor sentiment for non-state-driven companies. However, they have since recouped some of the losses. Alibaba remained the most popular China ADR among U.S. hedge funds, and it’s the only Chinese stock to be included in Goldman’s Hedge Fund VIP list . Shares of the Chinese internet giant have rebounded nearly 20% over the past month, trimming its 2020 losses to 36%. JD.com was the second most popular Chinese stock at the end of the third quarter with 56 funds owning the e-commerce name. Shares of JD jumped more than 30% this month alone, but the stock is still down almost 30% as the company has been hit by a slowing economy and consumer spending this year. Pinduoduo was the ADR with the largest net increase in hedge fund owners during the third quarter, according to Goldman. The stock has fared better than its peers, gaining about 10% this year. Brad Gerstner’s hedge fund Altimeter Capital bought $69 million worth of Pinduoduo last quarter, according to a filing. Two companies in tutoring business New Oriental Education and TAL Education were also on Goldman’s list. The duo were hit hard earlier this year after Beijing’s crackdown on the industry. Seth Klarman’s Baupost owned $184 million worth of New Oriental Education at the end of September, a filing showed. Other stocks on the list included Baidu , NIO , Trip.com and KE Holdings .