Should You Now Dispose Your Alibaba (BABA) Stake?

Mawer Investment Management, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. In its third-quarter letter, the fund mentioned that the valuation correction experienced in 2022 has its benefits in that gravity is being restored to the system and that the probability of a global economic slowdown remains high. 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, Mawer Investment Management 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 e-commerce company with a $207.7 billion market capitalization. Alibaba Group Holding Limited (NYSE:BABA) delivered a -35.37% return since the beginning of the year, while its 12-month returns are down by -56.63%. The stock closed at $76.77 per share on October 14, 2022.

Here is what Mawer Investment Management has to say about Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2022 investor letter:

“Other companies that have seen declines include those that have been impacted by macroeconomic uncertainty in China. Both Alibaba (NYSE:BABA) and Tencent (OTCPK:TCEHY) have reported results that are negative fundamentally, and while both have been under pressure from new competition, the recent results are also a reflection of the economic state in China.”

Alibaba Group Holding Ltd (NYSE:BABA), sign on a building, logo, share, stock, New York, offering

Christopher Penler /

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 -26.71% 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.


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