Hudson Bay Capital Management’s Top Stock Picks

#3 Yahoo! Inc. (NASDAQ:YHOO)

Shares held (as of September 30): 2.68 million
Total Value (as of September 30): $77.58 million
Percent of Portfolio (as of September 30): 3.37%

Although Yahoo’s shares have not done well this year, losing over 30% year-to-date, the path of least resistance certainly looks to be in the upward direction. Yahoo is considering spinning off its web properties in a transaction that should add up to around $1.0 billion of cash to Yahoo’s balance sheet. The remaining company’s value will depend on how Alibaba does. Seeing as Alibaba’s stock is on an upward trend again, Yahoo shares may be too. Hudson Bay cut its Yahoo! Inc. (NASDAQ:YHOO) stake by 41% in the quarter, but still owned 2.68 million shares at the end of September, equal to 3.37% of its equity portfolio.

#2 Alibaba Group Holding Ltd (NYSE:BABA)

Shares held (as of September 30): 1.43 million
Total Value (as of September 30): $84.26 million
Percent of Portfolio (as of September 30): 3.66%

Alibaba Group Holding Ltd (NYSE:BABA) has been relentlessly beaten down this year for various reasons, including Barron’s writing a negative piece on the company, Jim Chanos stating that the company is a short, and the Chinese economy no longer growing as fast as it once did. Not helping matters is the fall in the Shanghai index earlier this year, which led investors to sell Alibaba shares first and ask questions later. Fortunately for Alibaba, the Shanghai index has stabilized and Alibaba’s earnings have been solid so far. Hudson Bay added to its Alibaba Group Holding Ltd (NYSE:BABA) stake in the third quarter, upping its holdings by 37% to 1.43 million shares.