Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Alibaba Group Holding Ltd (BABA) a Good Stock to Buy Now?

Before we spend many hours researching a company, we’d like to analyze what hedge funds and billionaire investors think of the stock first. We would like to do so because the elite investors’ consensus returns have been exceptional. The top 30 mid-cap stocks among the best performing hedge funds in our database yielded an average return of 18% during the last 12 months, outperforming the S&P 500 Index funds by double digits. Although the elite funds occasionally have their duds, such as SunEdison and Valeant, the hedge fund picks seem to work on average. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Alibaba Group Holding Ltd (NYSE:BABA).

Is Alibaba Group Holding Ltd (NYSE:BABA) a healthy stock for your portfolio? Hedge funds seem to think so as the number of bullish hedge funds surged by 35 lately and BABA was included in the portfolios of 104 funds from our database at the end of the third quarter of 2016. However, it’s important to mention that the level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Novartis AG (ADR) (NYSE:NVS), The Coca-Cola Company (NYSE:KO), and Oracle Corporation (NASDAQ:ORCL) to gather more data points.

Follow Alibaba Group Holding Limited (NYSE:BABA)
Trade (NYSE:BABA) Now!

To the average investor there are several signals investors put to use to size up publicly traded companies. A duo of the less utilized signals are hedge fund and insider trading interest. We have shown that, historically, those who follow the top picks of the best money managers can outclass the broader indices by a significant margin (see the details here).

Alibaba Group Holding Ltd (NYSE:BABA), Logo, group, sign, chinese, business, sign, symbol

Pieter Beens /

With all of this in mind, we’re going to take a peek at the recent action encompassing Alibaba Group Holding Ltd (NYSE:BABA).

Hedge fund activity in Alibaba Group Holding Ltd (NYSE:BABA)

Heading into the fourth quarter of 2016, a total of 104 of the hedge funds tracked by Insider Monkey were long this stock, up by 51% from one quarter earlier. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Silver Lake Partners, managed by Jim Davidson, Dave Roux, and Glenn Hutchins, holds the biggest position in Alibaba Group Holding Ltd (NYSE:BABA). Silver Lake Partners has a $859.5 million position in the stock, comprising 17.8% of its 13F portfolio. Sitting at the No. 2 spot is Chase Coleman of Tiger Global Management LLC, with a $568.5 million position; the fund has 8.2% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish include Stephen Mandel’s Lone Pine Capital, Cliff Asness’s AQR Capital Management and Ken Fisher’s Fisher Asset Management.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.