Is it a Smart Choice to Acquire Alibaba (BABA) Shares?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners International Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Longleaf Partners International Fund declined 12.04% in the first quarter, while the MSCI EAFE Index declined 5.91%. New investments have a high hurdle to qualify given our conviction in our current holdings and the steep discount of the portfolio. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Longleaf Partners International Fund mentioned Alibaba Group Holding Limited (NYSE:BABA) and explained its insights for the company. Founded in 1999, Alibaba Group Holding Limited (NYSE:BABA) is a Hangzhou, China-based e-commerce company with a $293.1 billion market capitalization. Alibaba Group Holding Limited (NYSE:BABA) delivered a -7.76% return since the beginning of the year, while its 12-month returns are down by -46.68%. The stock closed at $109.57 per share on July 08, 2022.

Here is what Longleaf Partners International Fund has to say about Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2022 investor letter:

“We took advantage of price volatility to add to three of our most heavily discounted European businesses, including new purchases in 4Q 2021 and we reinitiated a position in Alibaba (NYSE:BABA), as the shares became even more heavily discounted amid broad China volatility in the period.”

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

Pixabay/Public Domain

Our calculations show that Alibaba Group Holding Limited (NYSE:BABA) ranks 19th on our list of the 30 Most Popular Stocks Among Hedge Funds. Alibaba Group Holding Limited (NYSE:BABA) was in 100 hedge fund portfolios at the end of the first quarter of 2022, compared to 96 funds in the previous quarter. Alibaba Group Holding Limited (NYSE:BABA) delivered a 7.90% return in the past 3 months.

In June 2022, we published an article that includes Alibaba Group Holding Limited (NYSE:BABA) in 5 Stocks to Buy As Virus Restrictions Are Lifted in China. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.