Japanese Billionaire Masayoshi Son is Dumping These 4 Stocks

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 106

Alibaba Group Holding Limited (NYSE:BABA) is an Hangzhou, China-based diversified technology.

The company has seen the ownership of Softbank fall to 14.6% during Q2 2022.

However, the decline in ownership would bring into use complex financial instruments known as “prepaid forward contracts,” which are considered a form of derivative contract. This move will dilute the ownership of Softbank without actually selling the shares. The contract will also save Softbank from putting 242 million shares in the public market and instead give these shares to financial institutions in return for the prepaid forward contracts. The deal is expected to generate $34 billion for the Japanese diversified giant.

Here’s what was said about Alibaba Group Holding Limited (NYSE:BABA) in Alger Capital’s Q2 2022 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is a leading e-commerce and cloud computing company in China. It also serves the big data analytics, digital media and entertainment markets. Alibaba’s shares have previously suffered from concerns about heightened regulatory oversight of the Chinese internet sector by the Chinese Communist Party. additionally, many investors became concerned about the potential for U.S. exchange listed Chinese ADRs to be delisted if they failed to meet U.S financial reporting standards by 2024. The shares have since outperformed in response to statements by the Chinese government supporting stable markets and overseas listings. The Chinese government also stated that its intensified regulatory efforts aimed at tech companies may end soon. Alibaba’s first quarter earnings and revenues exceeded estimates as determined by a consensus of analysts at financial services firms and provided by FactSet. The quarterly results benefited from better direct sales and increasing marketing efficiency.”