JB Global Capital, an investment firm, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The fund declined 12.1% in Q2, largely driven by Alibaba, its largest holding. However, since inception on January 3, 2023, the fund has returned 109.7%, compared with 94.4% for the S&P 500. Additionally, please check the fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, JB Global Capital highlighted Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational company that focuses on cloud computing, e-commerce, and artificial intelligence. On August 10, 2026, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $132.28 per share. One-month return of Alibaba Group Holding Limited (NYSE:BABA) was 13.70%, and its shares gained 4.32% over the past 52 weeks. Alibaba Group Holding Limited (NYSE:BABA) has a market capitalization of $306.21 billion.
JB Global Capital stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q2 2026 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) reported its March-quarter and fiscal year 2026 results on May 13th. A full breakdown is available in Alibaba’s Earnings: Strategic Implications, including an updated sum-of-the-parts financial model for paid subscribers.
The results show a company deliberately redirecting capital into AI infrastructure. Near-term profitability reflected those investments. Net income and free cash flow declined, and quick commerce losses continued to weigh on results. Against that backdrop, the parts of the business directly tied to the AI thesis told a different story: customer management revenue and Cloud both returned to growth. Cloud’s external revenue growth reached 40%, and management expects growth to accelerate in the quarters ahead. CEO Eddie Wu told shareholders that not a single server card sits idle right now, suggesting demand already exceeds capacity…” (Click here to read the full text)
Alibaba Group Holding Limited (NYSE:BABA) ranks 30 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 102 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the first quarter, compared to 115 in the previous quarter. While we acknowledge the risk and potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Alibaba Group Holding Limited (NYSE:BABA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Alibaba Group Holding Limited (NYSE:BABA) and shared a list of stocks expected to bounce back according to analysts. In addition, please check out our hedge fund investor letters Q2 2026 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.
