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

Page 2 of 2

As aggregate interest increased, specific money managers have jumped into Alibaba Group Holding Ltd (NYSE:BABA) headfirst. Tiger Global Management LLC, managed by Chase Coleman, initiated the most outsized position in Alibaba Group Holding Ltd (NYSE:BABA). Tiger Global Management LLC had $568.5 million invested in the company at the end of the quarter. Stephen Mandel’s Lone Pine Capital also initiated a $545 million position during the quarter. The other funds with new positions in the stock are Philippe Laffont’s Coatue Management, Dan Loeb’s Third Point, and Ken Griffin’s Citadel Investment Group.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Alibaba Group Holding Ltd (NYSE:BABA), but similarly valued. These stocks are Novartis AG (ADR) (NYSE:NVS), The Coca-Cola Company (NYSE:KO), Oracle Corporation (NASDAQ:ORCL), and Fomento Economico Mexicano SAB (ADR) (NYSE:FMX). This group of stocks’ market caps are closest to BABA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NVS 26 914753 4
KO 53 19569276 -2
ORCL 56 5840268 3
FMX 16 207760 1

As you can see these stocks had an average of 38 funds with bullish positions and the average amount invested in these stocks was $6.63 billion, which is lower compared to the $8.27 billion in Alibaba’s case. Oracle Corporation (NASDAQ:ORCL) is the most popular stock in this table, with 56 funds holding shares. On the other hand Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks, Alibaba Group Holding Ltd (NYSE:BABA) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Page 2 of 2