5 Best Growth Stocks To Buy According To Hedge Funds

3. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders in Q2: 146  

Number of Hedge Fund Holders in Q1: 135   

Alibaba Group Holding Limited (NYSE:BABA) is a China-based diversified technology company. It is placed third on our list of 11 best growth stocks to buy according to hedge funds.

On October 1, investment advisory KeyBanc maintained an Overweight rating on Alibaba Group Holding Limited (NYSE:BABA) stock but lowered the price target to $200 from $250. Hans Chung, an analyst at the advisory, issued the ratings update. 

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 14 million shares worth more than $3.2 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.”