Hayden Capital Sells Entire New Oriental Education Stake After 96% Plunge
In Q4 2025, Hayden Capital liquidated its entire position in New Oriental Education after acquiring shares in 2022 post-China tutoring crackdown turnaround. At the time, the stock traded at $55.74 with a one-month return of –7.68%, 52-week gain of 15.93% and a $9.12 billion market cap.
1. Hayden Capital Exits New Oriental Position
In the fourth quarter of 2025, Hayden Capital sold the last of its New Oriental Education shares, closing out a position initiated in late 2022 when the stock had plunged under regulatory pressure.
2. Stock Valuation and Recent Performance
At sale, New Oriental stock closed at $55.74 per share, posted a one-month return of –7.68% and a 52-week gain of 15.93%, with a market capitalization of $9.12 billion.
3. Turnaround Thesis and Shareholder Returns
The firm’s 2022 entry followed a 96% peak-to-trough drop after China’s tutoring crackdown; management then diversified into robotics, coding, arts, sports and live-streaming, forecasted a return to profitability and returned roughly $700 million via buybacks and debt repurchases.
4. Hedge Fund Interest and Comparative Upside
By year-end, 33 hedge funds held New Oriental shares, up from 28 the prior quarter, though Hayden Capital now views certain AI-linked stocks as offering greater upside and lower downside risk.