L1 Capital, an investment management company, released its “L1 Long Short Fund” third quarter 2022 investor letter. – a copy of which can be downloaded here. A quarterly portfolio net return of -5.9% was recorded by the fund for the third quarter of 2022, underperforming the S&P ASX200 Index which had a 0.4% gain for the same period. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, L1 Capital Long Short 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 multinational technology company with a $167.3 billion market capitalization. Alibaba Group Holding Limited (NYSE:BABA) delivered a -46.78% return since the beginning of the year, while its 12-month returns are down by -62.81%. The stock closed at $63.22 per share on October 25, 2022.
Here is what L1 Capital Long Short Fund has to say about Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2022 investor letter:
“Alibaba Group (Long -30%) shares fell as investor sentiment weakened regarding China’s economic recovery. We believe Alibaba’s earnings are likely to have bottomed in Q2 and should see a gradual recovery as China’s retail spend improves assome of the stricter COVID-related restrictions are eased. Alibaba remains a high-quality business with sustainable leading positions in both eCommerce and Public Cloud. We believe structural growth in these areas, supported by a broader economic recovery in 2023 and the exit of smaller unprofitable competitors in some of Alibaba’s key markets (e.g. online grocery) will support earnings growth going forward.”
Christopher Penler / Shutterstock.com
Our calculations show that Alibaba Group Holding Limited (NYSE:BABA) ranks 13th on our list of the 30 Most Popular Stocks Among Hedge Funds. Alibaba Group Holding Limited (NYSE:BABA) was in 106 hedge fund portfolios at the end of the second quarter of 2022, compared to 100 funds in the previous quarter. Alibaba Group Holding Limited (NYSE:BABA) delivered a -37.68% return in the past 3 months.
In October 2022, we also shared another hedge fund’s views on Alibaba Group Holding Limited (NYSE:BABA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
Suggested Articles:
- 5 Small-Cap Beverage Stocks To Buy
- 20 Cheapest States To Live in the US
- 10 Cheap Warren Buffett Stocks To Buy
Disclosure: None. This article is originally published at Insider Monkey.
