Here’s Why Alibaba (BABA) Remains to be a Strong Business

First Eagle Investment Management, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A net return of -1.93% was delivered by its Global Fund for the third quarter of 2021. The Global Fund underperformed the MSCI World Index in the period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

First Eagle Investment Management, in its Q3 2021 investor letter, mentioned Alibaba Group Holding Limited (NYSE: BABA) and discussed its stance on the firm. Alibaba Group Holding Limited is a Hangzhou, China-based e-commerce company with a $370 billion market capitalization. BABA delivered a -41.34% return since the beginning of the year, while its 12-month returns are down by -50.84%. The stock closed at $136.52 per share on November 25, 2021.

Here is what First Eagle Investment Management has to say about Alibaba Group Holding Limited  in its Q3 2021 investor letter:

“The Chinese stock market was down sharply in the third quarter as investors grew increasingly concerned about the country’s slowing economy and Beijing’s newly aggressive regulatory posture. Tech stocks, in particular, have suffered, and e-commerce giant Alibaba was no exception. Though risks may continue to pressure the company’s shares, we believe Alibaba is a strong business with an entrenched market position and attractive valuation.”

Gil C / Shutterstock.com

Based on our calculations, Alibaba Group Holding Limited (NYSE: BABA) ranks 13th in our list of the 30 Most Popular Stocks Among Hedge Funds. BABA was in 115 hedge fund portfolios at the end of the third quarter of 2021, compared to 146 funds in the previous quarter. Alibaba Group Holding Limited (NYSE: BABA) delivered a -19.27% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.