Apple Inc, Facebook Inc, Amazon, Alibaba: $300 Million Value Investor Likes Only Two Of These

Even though Alibaba Group Holding Limited (NYSE:BABA) was the biggest loser among these three stocks since the election, Trapeze Asset Management’s Randall Abramson doesn’t think it is undervalued. He is also on the same boat with David Einhorn regarding Amazon.com Inc.

“We like Facebook too as it’s fallen to a floor in our proprietary work and is sufficiently undervalued to now warrant our attention. We don’t consider the other two you mentioned undervalued at this time. The election didn’t really impact our view of these particular positions though Facebook, unlike the market, hasn’t moved, which is partly why there’s a potential buying opportunity,” Abramson said in an email conversation.

Amazon.com Inc., Facebook Inc., and Apple Inc are the three most popular stocks among 700+ hedge funds tracked by Insider Monkey at the end of September. On the other side, Alibaba has witnessed the biggest jump in hedge fund popularity during the third quarter. Even though Randall Abramson likes only two of these stocks and he seems very cautious these two names. He finished his investor letter with the following warning:

“President Trump’s plans for tax cuts, infrastructure spending and, potentially welcoming U.S. corporations to repatriate $2.5 trillion parked overseas should stimulate growth. And growth should cause corporate earnings, capital spending and consumer demand to rise—a virtuous cycle. But as we have said, this trend may be offset by higher interest rates and wage costs and greater foreign competition for a high U.S. dollar. The market giveth and the market taketh away.”