Hedge fund titans go shopping as their Asian peers retreat

  • Michael Burry’s bullish bets on stocks, including Alibaba Group Holding Limited (NYSE: BABA), followed stake increases from other leading hedge funds, including Moore Capital Management and Third Point LLC, in the first quarter.

  • Asia-based companies, including Segantii Capital Management Ltd. of Simon Sadler and Alpine Investment Management Ltd., accounted for nearly half of Alibaba’s ADRs offloaded by the top 10 hedge fund sellers in the quarter, Bloomberg cites 13F filings.

  • The only Asia-based company among the top 10 buyers was Hermes Li’s Aspex Management (HK) Ltd.

  • According to filings, a handful of Asia-based peers were among the biggest sellers. Tairen Capital Ltd., Prime Capital Management Co Ltd and CoreView Capital Management Ltd exited their positions.

  • Alibaba’s ADRs lost near 2023 peak in January amid news of Softbank Group Corp’s (OTC:SFTBF) (OTC:SFTBY) plans to reduce its stake and rise in geopolitical tensions.

  • Asia-based hedge funds typically invest most of their capital outside of US exchanges, which means their 13F filings only reflect a small percentage of their investments.

  • The most popular holding that these six Asian sellers added during the quarter was Trip.Com Group Limited (NASDAQ: TCOM). Ariose, CoreView, Segantii and Tairen more than tripled their combined Trip.com ADR holdings.

  • CoreView and Segantii also created new positions in Baidu, Inc. (NASDAQ:BIDU) in the quarter, betting on peer ChatGPT and a planned $5 billion share buyback.

  • Price action: Shares of BABA traded down 0.27% to $80.75 pre-market when last checked on Tuesday.

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This article Alibaba Stake Boosted: Hedge Fund Titans Go Shopping While Asia Peers Bow Out originally appeared on Benzinga.com


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