5 Best Low Risk Investments in 2023

4. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 112

Alibaba Group Holding Limited (NYSE:BABA) is one of the best low risk investments in 2023 according to hedge funds. Alibaba Group Holding Limited (NYSE:BABA) recently said it will give access to its AI model to the general public in the “near future.” Reuters reported major companies including OPPO, Taobao, DingTalk and Zhejiang University have reached agreements with Alibaba Group Holding Limited (NYSE:BABA) to train their LLMs based on  Tongyi Qianwen, Alibaba’s AI model.

As of the end of the second quarter of 2023, 112 hedge funds tracked by Insider Monkey had stakes in Alibaba Group Holding Limited (NYSE:BABA). The most significant stakeholder of the firm during this period was David Tepper’s Appaloosa Management LP which owns a $373 million stake in Alibaba Group Holding Limited (NYSE:BABA).

L1 Long Short Fund made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2023 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) (Long -18%) shares weakened in recent months as Chinese reopening strength faded and macro-economic datapoints began sequentially declining. Nevertheless, we believe the Chinese government will use consumption as a key lever to reinvigorate the economy post-COVID lockdowns. Alibaba remains a high-quality business with leading positions in both eCommerce and Public Cloud, and management is taking proactive steps to unlock shareholder value. It has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media, and Entertainment Group. Each group will be managed independently, with a separate CEO and board, have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this restructure will be a strong positive catalyst to unlock the sum-of-the-parts valuation upside in the company.”