5 High Free Cash Flow Stocks to Buy in 2022

4. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 100   

Free Cash Flow TTM: $89 Billion

Alibaba Group Holding Limited (NYSE:BABA) is a diversified technology company. The stock has slid in the past few days after the Securities and Exchange Commission in the United States added it to the list of companies that could possibly face delisting in the United States. The move is part of a broader move by US regulators that have asked Chinese firms to allow independent auditors to review the financials of Chinese companies trading in the US. There are also reports that Jack Ma, the founder of the firm, will cede control over the company. 

On July 19, Bernstein analyst Robin Zhu upgraded Alibaba Group Holding Limited (NYSE:BABA) stock to Outperform from Market Perform and raised the price target to $130 from $115, predicting that the incremental gross merchandise value share of the firm will improve in the coming quarters. 

Among 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 14.4 million shares worth more than $1.5 billion. 

In its Q1 2022 investor letter, Longleaf Partners Fund, 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:

“We took advantage of price volatility to add to three of our most heavily discounted European businesses, including new purchases in 4Q 2021 and we reinitiated a position in Alibaba Group Holding Limited (NYSE:BABA), as the shares became even more heavily discounted amid broad China volatility in the period.”