Artisan Partners, an investment management company, released its “Artisan Select Equity Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fourth quarter delivered another record-breaking performance for US tech equities. The fund’s Investor Class ARTNX, Advisor Class APDNX, and Institutional Class APHNX returned -1.36%, -1.32%, and -1.33% respectively, in the fourth quarter compared to a 2.41% return for the S&P500 Index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Artisan Select Equity Fund emphasized stocks such as Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach. The one-month return of Alibaba Group Holding Limited (NYSE:BABA) was 34.38%, and its shares gained 84.04% of their value over the last 52 weeks. On February 28, 2025, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $132.51 per share with a market capitalization of $314.83 billion.
Artisan Select Equity Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2024 investor letter:
“Alibaba Group Holding Limited’s (NYSE:BABA) share price decline was primarily giving back the gains from the prior quarter. Recall that all Chinese stocks surged last quarter after the Chinese government unveiled an unanticipated stimulus that temporarily captivated investors. The reality of the undersized stimulus and the challenges facing the Chinese economy eventually prevailed, leading Chinese equities—including Alibaba—to come back down to earth. Despite our concerns about China’s economic outlook, which we outlined in detail in last quarter’s letter, shares of Alibaba still represent significant value. The company is a leading player in several attractive market segments. We believe management is doing the right things, such as selling off businesses and returning capital to shareholders. It has made several changes to management and strategy that we expect will return the business to healthy growth over the coming year. In our opinion, the valuation is depressed and does not reflect a fair value for a company with these attributes.”
An e-commerce platform displaying a wide range of products to customers online.
Alibaba Group Holding Limited (NYSE:BABA) is in 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 107 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the fourth quarter compared to 115 in the third quarter. Alibaba Group Holding Limited’s (NYSE:BABA) consolidated revenue for fiscal third quarter of 2025 was RMB 280.2 billion, an 8% rise from previous year’s same quarter. While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Alibaba Group Holding Limited (NYSE:BABA) and shared the list of undervalued wide moat stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.