L1 Capital, an investment management firm, released its “L1 Long Short Fund” second quarter 2023 investor letter, a copy of the same can be downloaded here. Global markets were mixed over the quarter, while the US stock market performed strongly due to the strength in technology mega-cap stocks. The portfolio returned 0.1% in the second quarter compared to 1.0% for the S&P ASX200 Accum Index. For the financial year, the portfolio returned 13.5%. In addition, please check the fund’s top 5 holdings to know about its top bets for 2023.
L1 Long Short Fund highlighted stocks like Alibaba Group Holding Limited (NYSE:BABA) in the second quarter 2023 investor letter. Based in Hangzhou, the People’s Republic of China, Alibaba Group Holding Limited (NYSE:BABA) offers technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses. On September 1, 2023, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $95.01 per share. One-month return of Alibaba Group Holding Limited (NYSE:BABA) was -1.95%, and its shares gained 3.50% of their value over the last 52 weeks. Alibaba Group Holding Limited (NYSE:BABA) has a market capitalization of $241.97 billion.
L1 Long Short Fund made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2023 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) (Long -18%) shares weakened in recent months as Chinese reopening strength faded and macro-economic datapoints began sequentially declining. Nevertheless, we believe the Chinese government will use consumption as a key lever to reinvigorate the economy post-COVID lockdowns. Alibaba remains a high-quality business with leading positions in both eCommerce and Public Cloud, and management is taking proactive steps to unlock shareholder value. It has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media, and Entertainment Group. Each group will be managed independently, with a separate CEO and board, have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this restructure will be a strong positive catalyst to unlock the sum-of-the-parts valuation upside in the company.”
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Alibaba Group Holding Limited (NYSE:BABA) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 112 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of second quarter which was 128 in the previous quarter.
We discussed Alibaba Group Holding Limited (NYSE:BABA) in another article and shared the list of biggest generative AI companies in the world. In addition, please check out our hedge fund investor letters Q2 2023 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.
