Is Alibaba Group Holding Limited ready to recover soon? The number of long hedge fund positions has declined in recent months. Alibaba Group Holding Limited was in 135 hedge fund portfolios at the end of the first quarter of 2021. The all-time high of this statistic is 170.
Hedge funds ‘ reputation as smart investors has been tarnished over the past decade, as their hedged returns could not keep up with the unsecured returns of market indices.
Do hedge funds think BABA is a good stock now?
At the end of the first quarter, a total of 135 hedge funds were bullish on this stock, one Change of -13% compared to the fourth quarter of 2020. According to publicly available data on hedge funds and institutional investors, Fisher Asset Management of Ken Fisher has the most valuable position in Alibaba Group Holding Limited with a value of almost $ 3,1519 billion, which is 2,2% of the total value.
Citadel Investment Group is in second place, led by Ken Griffin, who holds a call position in the amount of $ 2,3696 billion. Other hedge funds and institutional investors holding long positions are Rokos Capital Management by Chris Rokos, Tiger Global Management LLC by Chase Coleman and Millennium Management by Israel Englander.
By contrast, many retail investors are particularly optimistic about their investments in Alibaba Group Holding Ltd., as they believe, that you are getting into a stock while it is still available at a bargain price. Many even believe that Alibaba is the next Amazon.com Inc. Share will.
What speaks against Alibaba?
It is illegal for a foreigner to own shares in a Chinese internet stock because it is listed in China. Investors thus acquire depository receipts that do not have voting rights. Even though retail investors don’t care too much about voting rights, many institutional investors do, which could be one reason for the decline in institutional investors.
Also, many retail investors believe that large technology companies are growing organically, but the Asset and data sourcing are key value drivers. Alibaba has completed over 300 acquisitions since its inception. Such acquisitions are intended to exploit synergies, but are costly and involve integration risks.
However, China has made significant progress in its transformation into a highly skilled economy since Alibaba gained prominence. As a result, competition from companies such as Tencent and JD.com. China generally wants to maintain competition in the industry and is against the idea of big tech dominance. Suppose that regulators take a detrimental approach to acquisitions. In this case, the Slowing the growth of the company, since vertical and horizontal asset acquisitions make up a large part of the company’s success.
First of all, if we look at Alibaba’s performance over the past year, we can see that during the boom of Chinese technology stocks came to failures at Alibaba. Many investors have remained optimistic, but the stock has not moved even as Alibaba’s profits have continued to grow.
Last updated on June 13, 2021
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