eHi Car Services Ltd (NASDAQ:EHIC) becomes the hedge fund favorite company. Hedge funds are reportedly increasing their collective stake in the China's car rental company, according to the regulatory filing to the Securities and Exchange Commission on Thursday.

Founded in 2006, eHi focused its business in providing comprehensive car rental services to both retail and corporate clients in China. The company has more than 500 outlets in in more than 80 cities in China. It is reported that most of Fortune 500 companies which have their operation in China trusted eHi as their designated car service.

Zacks Investment Research in its note as quoted by Sonoran Weekly Review, described eHi as, " The Company offers self-drive car rental services, car services and international car rental service. It provides self-drive car rentals to both individual customers and corporate clients. The Company's chauffeured car services include drop-off and pick-up services at local airports, business shuttle service, intercity transportation service and etc. It offers international car rental service to its customers when they travel abroad. eHi Car Services Limited is headquartered in Shanghai, the People's Republic of China."

eHi has a wide range of corporate clients from various sectors, energy, education, advertisement, finance, and manufacturing industries. The company also provide comprehensive of its car-rental service, offering both self-drive and chauffeur drive. With such convenient, eHi has become the preferred choice of transportation for business travelers and urban white-collars as well.

In its main operation the company operates its car rentals business through its subsidiaries Shanghai-based eHi Car Rental Co, Ltd. and eHi Auto Services Co, Ltd. in Jiangsu

On November 18, 2014 eHi went public and traded its stock in New York Stock Exchange. After two years in its stock market, hedge funds seem to favor its stock as Bloomberg reported. Hedge funds now own larger part of eHi compared to other U.S. listed Chinese company. eHi placed second after Autohome Inc., which has its 35% stake owned by hedge funds.

Big hedge funds including Greenwoods Asset Management and Tiger Global Management are getting their hands into the company, which has taken advantage from growth of middle class in China. eHi has completed its new debt financing at $200 million which will be utilized to optimize its fleet size by 2017 and is expected to report its earnings on April, 6.

Greenwood Asset Management as Vista Voice reported has now owned 9.6% of Ehi Car Services. The hedge fund reported its stake in regulatory form 13G/A filed with the Securities and Exchange Commission on Thursday.

On the same day, the company's share was traded down 3.16% during mid-day trading to reach $11.35. The company has a trading volume of 12,178 shares with 50 day moving average is $11.68 and its 200 day moving average is $12.03.

Following its successful operation and expansion plan, eHi has drawn interest from hedge funds. Many hedge funds including big funds have increased their stake in eHi.