Hedge Funds Are Selling Palantir Technologies (PLTR) and 5 Other Tech Stocks

3. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders in Q4 2021: 96 

Number of Hedge Fund Holders in Q3 2021: 115  

Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing solutions. It is one of the Chinese stocks hit on Wall Street amid a regulatory crackdown in Beijing. 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 $1.6 billion. 

On March 15, JPMorgan analyst Alex Yao downgraded Alibaba Group Holding Limited (NYSE:BABA) stock to Underweight from Overweight and reduced the price target to $65 from $180, noting that rising geopolitical and macro risks were forcing investors to reduce exposure to Chinese internet stocks. 

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 Group Holding Limited (NYSE:BABA) 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 Group Holding Limited (NYSE:BABA) is the second largest position in the Portfolio.”