Emerald Wealth Partners, an independent asset and wealth management firm based in Zurich, released its Q4 2025 investor letter for the “Growth Equity Strategy.” A copy of the letter is available to download here. In 2025, the strategy returned +3.1% (gross) and +3.0% (net), resulting in the year-to-date return of 16.7% (gross) and +16.0% (net). Discussions on a potential bubble in Artificial Intelligence (AI) markets were a significant feature of 2025, especially in Q4, contributing to a pullback in AI stocks as investors expressed fears of an upcoming downturn. President Trump’s erratic trade and foreign policies were another challenge faced by the market in 2025. In addition, you can check the Strategy’s top 5 holdings to determine its best picks for 2025.
In its fourth-quarter 2025 investor letter, Emerald Growth Equity Strategy highlighted stocks like Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational company that focuses on cloud computing, e-commerce, and artificial intelligence. On March 16, 2026, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $136.71 per share. One-month return of Alibaba Group Holding Limited (NYSE:BABA) was -12.04%, and its shares lost 4.22% over the past 52 weeks. Alibaba Group Holding Limited (NYSE:BABA) has a market capitalization of $326.383 billion.
Emerald Growth Equity Strategy stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its fourth quarter 2025 investor letter:
“Clearly, the current pessimism has created a rare opportunity to buy excellent businesses at compelling valuations. Alibaba Group Holding Limited (NYSE:BABA) and Tencent are good examples. Alibaba is one of China’s digital infrastructure backbones, a $150 billion revenue company that has evolved from Jack Ma’s startup into the dominant force in Chinese e-commerce and cloud computing. The company commands 45% of China’s e-commerce market through Taobao and Tmall, platforms that connect 10 million merchants with one billion customers. After years of competitive pressure from JD.com and Pinduoduo, Alibaba’s market position has stabilized, and its scale enables high-margin operations while taking less from merchants than competitors.
As importantly, the regulatory environment has shifted dramatically since 2023, with Beijing moving from crackdown to active support, explicitly endorsing Alibaba’s aggressive capital return plans of 117 billion CNY in 2025 backed by 500 billion CNY in net cash….” (Click here to read the full text)
Alibaba Group Holding Limited (NYSE:BABA) is in 30th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 115 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the fourth quarter, compared to 130 in the previous quarter. While we acknowledge the risk and potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Alibaba Group Holding Limited (NYSE:BABA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Alibaba Group Holding Limited (NYSE:BABA) and shared a list of the best stocks with huge upside potential to buy according to Reddit. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
