Should You Exit Your Position in Alibaba Group Holding Limited (BABA)?

ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy underperformed its benchmark index. The overall stock selection impacted the performance of the strategy in the quarter. The strategy also posted losses in nine sectors among the 11 sectors it invested in. IT and healthcare sectors were the primary detractors of the strategy. In addition, please check the fund’s top five holdings to know its best picks in 2022.

ClearBridge Investments highlighted stocks like Alibaba Group Holding Limited (NYSE:BABA) in the Q3 2022 investor letter. Headquartered in Hangzhou, the People’s Republic of China, Alibaba Group Holding Limited (NYSE:BABA) is a technology company. On November 4, 2022, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $69.81 per share. One-month return of Alibaba Group Holding Limited (NYSE:BABA) was -11.90% and its shares lost 56.95% of their value over the last 52 weeks. Alibaba Group Holding Limited (NYSE:BABA) has a market capitalization of $188.599 billion.

ClearBridge Investments made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2022 investor letter:

“As long-term investors, we have approached these moves in a thoughtful way, reducing positions when short-term headwinds cause us to re-examine our investment thesis and only exiting names when we believe with certainty that the reason for owning them no longer applies. This was the case with Alibaba Group Holding Limited (NYSE:BABA), which we exited in the second quarter when the company suffered accelerated market share declines, in addition to the broader macro issues it was facing.”

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

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Alibaba Group Holding Limited (NYSE:BABA) is in 13th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the second quarter which was 100 in the previous quarter.

We discussed Alibaba Group Holding Limited (NYSE:BABA) in another article and shared the list of the largest IPOs of all time. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.


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