Why Yahoo! Inc. (YHOO)’s Spinoff of Alibaba Group Holding Ltd (BABA) Shares Good News for Investors

Regardless of what happens, we are big believers in the value of tracking what hedge funds are doing, and firm believers in the value they provide to shareholders when they take on the mantle of activist investors, ensuring that shareholder’s best interests are being represented in the company’s affairs and providing them fresh perspectives on how to maximize value.

That’s why it’s so important to track and follow the moves of activist investments from the outset, even before those investors attempt to affect any big changes at the companies in question. This has proved to be a profitable investment angle, and why we actively report on the latest activist positions from the most successful hedge funds in the world.

Other hedge funds we track with investments in Yahoo! Inc. (NASDAQ:YHOO) include David E. Shaw’s D. E. Shaw & Co. with 19.57 million shares, John Thaler’s JAT Capital Management with 8.85 million shares, and Rob Citrone’s Discovery Capital Management with 7.53 million shares. Funds we track owned over 10% of Yahoo’s common shares as of September 30.

Alibaba Group Holding Ltd (NYSE:BABA) is also proving to be an extremely popular stock among our tracked hedge funds, with an expectation that its long-term performance will outdo the market as it expands internationally, and internet penetration in China increases. However another option for investors given the interesting value connection between Yahoo! Inc. (NASDAQ:YHOO) and Alibaba is to short Alibaba, and go long on Yahoo, essentially creating the spinoff synthetically before it happens.

Some of our tracked funds with large investments in Alibaba Group Holding Ltd (NYSE:BABA)  include Andreas Halvorsen’s Viking Global with 11.39 million shares, Dan Loeb’s Third Point with 7.2 million shares, and George Soros’ Soros Fund Management with 4.4 million shares.

Disclosure: None