John Paulson, a prolific hedge fund manager, has been disclosed to have stake in Chinese car sharing company Didi Chuxing. Paulson has acted as an economic advisor to President-elect Donald Trump, who is a vocal critic of Chinese companies. He had also hosted a fund raiser for the President-elect.

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John Paulson took the stake through his Advantage fund. It is reported that Didi Chuxing holding accounts for 7 percent of the total portfolio value. Didi Chuxing is a privately held company and is backed by prominent tech companies such as Apple and Alibaba.

Paulson disclosed the holding during an investors meeting in New York, where he also apologized for the poor results shown by his Advantage funds. The Paulson Advantage fund saw its value decline by 22 percent during this year. His Paulson Advantage Plus fund, a leveraged fund, dipped by 26 percent during the same time.

Didi Chuxing is steadily gaining clout in the international market. Apart from Paulson funds, the Chinese company's stock has also been picked by various other investment firms and hedge funds. Coatue Management is believed to have stake in Didi Chuxing.

Third Point, a Daniel Loeb-led investment firm, also holds interest in the Chinese ride sharing company. Loeb said, "We expect Didi to grow into one of China's largest internet companies."

Didi Chuxing gained wide edge in the Chinese market earlier this year as the company bought its arch rival Uber's operations in the country. Both the companies were engaged in expensive price war, straining their financial position. 

TagsJohn Paulson, donald trump, Didi Chuxing