Five Foreign Stocks To Buy Now

4. Alibaba Group Holding Ltd (NYSE:BABA)

Investors with Long Positions (as of June 30): 85

Aggregate Value of Investors’ Holdings (as of June 30): $4.77 Billion 

The China-based e-commerce juggernaut has seen its stock crater by more than 44% year-to-date and the current weakness in the Chinese economy isn’t exactly helping its cause either. Hedge funds are generally staying put with their investments, as the number of firms that held Alibaba Group Holding Ltd (NYSE:BABA) in their portfolios at the end of March was just one higher. Rob Citrone’s Discovery Capital Management is currently the largest shareholder of the company among these firms, owning more than 6.52 million shares valued at $536.73 million. As of the end of June, total hedge fund holdings accounted for 11.80% of the company’s common stock. Jonathan Liang recently published a bearish piece on Alibaba Group Holding Ltd (NYSE:BABA) claiming that the company’s stock has a downside possibility of 50% owing to an egregiously high earnings multiple as compared to industry peers and doubtful GMV per user figures. Investors might want to be cautious about this pick.