Alibaba Group Holding Ltd (BABA) Getting Pummeled In Early Trading After Avoiding Heavy Damage Monday As Chinese Stocks Continue To Freefall

What does the smart money think about Alibaba Group Holding Ltd (NYSE:BABA)?

Discovery Capital Management, led by Rob Citrone, holds the most valuable position in Alibaba Group Holding Ltd (NYSE:BABA). Discovery Capital Management has a $730.4 million position of 8.77 million shares, comprising 8.3% of its 13F portfolio. Coming in second is Andreas Halvorsen of Viking Global, with a $578.1 million position of 6.94 million shares; 2.2% of its 13F portfolio is allocated to the company. Other members of the smart money with similar optimism include Chase Coleman’s Tiger Global Management, Alec Litowitz and Ross Laser’s Magnetar Capital, and George Soros’ Soros Fund Management.

Because Alibaba Group Holding Ltd (NYSE:BABA) saw declining sentiment from hedge fund managers, there exists a select few funds that elected to cut their positions entirely heading into the second quarter. Interestingly, Dan Loeb‘s Third Point cut the biggest position of the “upper crust” of funds followed by Insider Monkey, comprising about $1.04 billion held in 10.0 million shares. James Dinan’s fund, York Capital Management, also dropped its holding of 2.81 million shares or about $292.5 million worth of shares.

Because of the troubles in the Chinese markets which may affect how much optimism and therefore business there is in the country where Alibaba primarily operates, as well as the decline in interest among hedge funds, we don’t see Alibaba Group Holding Ltd (NYSE:BABA) as a good stock to buy at the moment.

Disclosure: None