Melvin Capital’s Top 5 Stock Holdings

2. Alibaba Group Holding (NYSE: BABA)

The hedge fund has also raised its position in Alibaba Group Holding (NYSE: BABA) by 37% in the September quarter to 4.75% of the overall portfolio. It is the second-largest stock holding of Melvin’s 13F portfolio. Shares of Alibaba underperformed compared to its competitors amid regulatory related challenges.

Alger Spectra Fund stated in an investor’s letter that Alibaba is a smart long-term investment. Here is what Alger Spectra Fund stated:

“Alibaba is the dominant e-commerce platform in the Chinese economy. where e-commerce remains underpenetrated and fast-growing. It is also a leading player in China’s cloud computing, big data analytics. digital media and entertainment markets. The performance of shares of Alibaba reflects investor excitement about its ability to exploit the large addressable market opportunities in e-commerce and cloud computing because of state-enacted barriers blocking foreign competitive entry.

Additionally, the accelerating pace of consumer spending in China is one of the world’s greatest growth stories and Alibaba is a prime beneficiary.”