Should You Dump Your Alibaba (BABA) Stake?

Mawer Investment Management, an investment management company, has published its third quarter 2022 investor letter – a copy of which can be downloaded here. In its third-quarter letter, the fund noted that the valuation correction experienced in 2022 has its benefits in gravity being returned to the system and that the probability of a global economic slowdown remains high. Try to take some time to review the top 5 fund holdings so you can get an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Mawer Investment Management mentioned Alibaba Group Holding Limited (NYSE:BOTTOM) 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 ) has delivered a -35.37% return since the beginning of the year, while its 12-month return is down -56.63%. The stock closed at $76.77 per share on October 14, 2022.

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

“Other companies that have seen declines include those affected by macroeconomic uncertainty in China. Both Alibaba (NYSE:BABA) and Tencent (OTCPK:TCEHY) reported fundamentally negative results, and while both are under pressure from new competition, 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

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

Christopher Penler / Shutterstock.com

Our calculations show that Alibaba Group Holding Limited (NYSE: BABA) is 13th on our list of 30 Most Popular Stocks in Hedge Funds. Alibaba Group Holding Limited (NYSE: BABA ) held 106 hedge fund portfolios at the end of the second quarter of 2022, up from 100 funds in the previous quarter. Alibaba Group Holding Limited (NYSE: BABA ) has delivered -26.71% return over the past 3 months.

In October 2022, we also shared the views of another hedge fund on Alibaba Group Holding Limited (NYSE: BABA) in another article. You can find other investor letters from hedge funds and prominent investors in our hedge fund investor letters 2022 Q3 page.

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Disclosure: None. This article was originally published on Insider Monkey.

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