5 Best ADR Stocks to Buy in 2021

2. Alibaba Group Holding Limited (NYSE: BABA)

Number of Hedge Fund Holders: 135   

Alibaba Group Holding Limited (NYSE: BABA) is a China-based multinational technology company primarily in the ecommerce business. It was founded in 1999 and is placed second on our list of 10 best ADR stocks to buy In 2021. Over the years, Alibaba has expanded from the core retail business to cloud computing, digital media and entertainment, internet-based health platforms, financial services, and logistics, among others. It has a market cap of over $580 billion and posted more than $109 billion in annual revenue in the previous fiscal year. 

Alibaba Group Holding Limited (NYSE: BABA) stock has taken a beating in recent weeks as the Chinese government cracks down on dual listed companies. On April 30, the firm froze pay for senior executives and raised the salaries of junior staff in a move aimed at boosting morale. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE: BABA) with 13.9 million shares worth more than $3.1 billion. 

In its Q1 2021 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE: BABA) was one of them. Here is what the fund said:

“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second largest position in the Portfolio.”