A financial website that oversees trading and hedge fund data for ordinary investors claimed that the volatility of the financial markets today had urged bullish activity over Alibaba shares. The company was reported to have experienced an increase in financial activity from the world's most significant hedge funds.
According to Yahoo! Finance, Alibaba Group Holding Limited (BABA) was in 170 hedge fund portfolios from the world's largest by the end of 2019. The report claimed that about 160 hedge funds with BABA holdings showed that it ranked fourth as the most popular stocks among hedge funds.
Insider trading indicators and other hedge fund tools showed that historically, the company had been preferred by the best fund managers. It was revealed that BABA could easily outperform broader indices by a substantial amount.
According to Insider Monkey, the monthly stock picks of BABA returned by 72.9 percent since March 2017. IT was also found that this value outperformed S&P 500's exchange-traded fund by more than 41 percentage points.
The short strategy performed by the reporters claimed that S&P 500 was short by 20 percentage points against BABA annually. Thus, the report claimed that under the hedge fund market, investors had preferred BABA over US tech stocks.
During the first quarter of 2020, 170 hedge funds were long in BABA stock, with a change of six percent from one previous quarter. In total, 113 hedge funds were found to hold shares with bullish call options for BABA in 2019.
It was revealed that Fisher Asset Management held the most valuable stake in BABA. The holding was worth 2.795 billion USD at the end of the third quarter of 2019. The second most valuable stake was held by GQG Partners, with 1.620 billion USD worth of shares.
Other hedge funds who have valuable stakes with the company included Citadel Investment Group, Egerton Capital Limited, and Lone Pine Capital. These companies were also referred to as the largest holders of shares with BABA.
The report found that an average of 94.5 hedge funds have bullish positions with BABA amounting to 22.443 billion USD. Thus, it was found that BABA was the most popular among hedge funds.
It was also discussed that BABA stocks had gained 0.1 percent since March 2, 2020. The rate beat the market by 4.1 percentage points. However, the stock returned with a 0.5 percent decline during its first-quarter, outperforming the market once again.
According to Investor's Business Daily, tech and growth stocks have been performing well in 2020 though BABA stocks fell by 0.2 percent to 211.46 at the end of the trading session. It has acquired a double-bottom base with 226.80 points.
