5 Stocks Better than Zillow According to Hedge Funds

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 146   

Alibaba Group Holding Limited (NYSE:BABA) operates as a diversified technology company with core interests in the ecommerce business. The stock has suffered in recent months amid a Chinese government crackdown against dual-listed firms. However, hedge funds have piled into the stock amid the share price decline. Optimism around the company has also returned following reports that Jack Ma, the founder of the firm, was seen at a meeting in Hong Kong after months of absence in the public sphere. 

Barclays analyst Jiong Shao recently initiated coverage of Alibaba Group Holding Limited (NYSE:BABA) stock with an Overweight rating and a price target of $275, naming the company the top tech pick from China. 

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 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.”