Alibaba (BABA) Surged in Q1

Jackson Peak Capital, an investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned +33.2%, net compared to MSCI ACWI’s -0.9% return and HFRX Equity Hedge Index’s +0.2% return. Fundamental longs, event-driven longs, and net exposure management led the fund’s outperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Jackson Peak Capital highlighted stocks such as Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach. The one-month return of Alibaba Group Holding Limited (NYSE:BABA) was -5.04%, and its shares gained 49.29% of their value over the last 52 weeks. On June 4, 2025, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $119.45 per share with a market capitalization of $284.907 billion.

Jackson Peak Capital stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2025 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA), the Chinese ecommerce, cloud computing and technology conglomerate, was a contributor as a long. BABA shares not only the qualities of the Chinese ADR long basket discussed in our last letter (low valuations, under-owned, stimulus), but also is a key driver and beneficiary of the AI arms race in China. BABA develops LLM models and provides cloud computing infrastructure. Additionally, the administration’s posture towards domestic tech companies has changed significantly with President Xi inviting tech leaders, including BABA founder Jack Ma, to a symposium in February.”

Analyst Explains Why He Sold Alibaba Group (BABA) - ‘Gave This Trade 90 Days to Work’

An e-commerce platform displaying a wide range of products to customers online.

Alibaba Group Holding Limited (NYSE:BABA) is in 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 125 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the first quarter, which was 107 in the previous quarter. While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Alibaba Group Holding Limited (NYSE:BABA) and shared Loomis Sayles Global Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.