Alibaba Group Holding Ltd (BABA): Does Hedge Fund Sentiment Indicate Big Things Ahead?

Page 3 of 3

Let’s now review hedge fund activity in other stocks similar to Alibaba Group Holding Ltd (NYSE:BABA). We will take a look at Anheuser-Busch InBev NV (ADR) (NYSE:BUD), Pfizer Inc. (NYSE:PFE), Wal-Mart Stores, Inc. (NYSE:WMT), and Royal Dutch Shell plc (ADR) (NYSE:RDS). All of these stocks’ market caps resemble BABA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BUD 36 6067011 -13
PFE 109 8624537 12
WMT 49 6556548 -12
RDS 28 872437 -6

As you can see these stocks had an average of 56 hedge funds with bullish positions and the average amount invested in these stocks was $5.53 billion. That figure was $6.74 billion in BABA’s case. Pfizer Inc. (NYSE:PFE) is the most popular stock in this table. On the other hand Royal Dutch Shell plc (ADR) (NYSE:RDS) is the least popular one with only 28 bullish hedge fund positions. Alibaba Group Holding Ltd (NYSE:BABA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal, especially when coupled with fast-rising hedge fund interest. However there are a lot of variables to consider, so one should thoroughly research the stock before committing to a long position.

Disclosure: None

Page 3 of 3