Hedge Funds Regret Selling These Soaring Stocks, Part 2

#2 Alibaba Group Holding Ltd (NYSE:BABA)

Investors with Long Positions (as of September 30): 60

Aggregate Value of Investors’ Holdings (as of September 30): $3.79 Billion

A lot of uncertainty surrounded this e-commerce juggernaut last year and the stock closed 2015 with losses of around 22%. However, during the fourth quarter, the stock surged by 40% as the company posted record-breaking Singles Day sales and went through the holiday season. Quite a few hedge funds missed out on this rally as the total number of funds which were long in Alibaba Group Holding Ltd (NYSE:BABA) fell by 25 during the third quarter with the respective value of aggregate investments sliding by $979 million. Among the funds that sold their shares were David Tepper’s Appaloosa Management and Jeffrey Smith’s Starboard Value LP, both of which disposed of their entire stakes in Alibaba during the third quarter. On the other hand, Boykin Curry‘s Eagle Capital Management held about 8.08 million shares of Alibaba Group Holding Ltd (NYSE:BABA) at the end of September.

Since the beginning of the year, Alibaba’s stock has lost another 11%, amid mixed data from China. Next week the eyes will be on China again, as the country’s government will reveal the growth rate for 2015. In any case, Alibaba is a good long-term investment, due to its leading position on the Chinese e-commerce market. With the earnings season ahead, Alibaba is likely to post strong figures for the last quarter, taking into account its leading position and strong Singles Day results.