Is it Time to Sell Your Alibaba (BABA) Shares?

Harding Loevner, an investment management firm, published its “Global Equity Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -1.31% was recorded by the fund for the third quarter of 2021, trailing its Benchmark, the MSCI World Index, which returned 0.09% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Harding Loevner Global Equity Fund, in its Q3 2021 investor letter, mentioned Alibaba Group Holding Limited (NYSE: BABA) and discussed its stance on the firm. Pinterest, Inc. is a Hangzhou, China-based e-commerce company with a $332.3 billion market capitalization. BABA delivered a -51.89% return since the beginning of the year, while its 12-month returns are down by -58.11%. The stock closed at $111.96 per share on December 03, 2021.

Here is what Harding Loevner Global Equity Fund has to say about Alibaba Group Holding Limited in its Q3 2021 investor letter:

“Fittingly in a quarter where the China paradox was front and center, we sold Alibaba and bought Baidu. Alibaba has withstood several rounds of regulatory change in the past, but the expanded regulatory focus now puts almost every aspect of its business in the line of fire. Smaller, faster-growing competitors such as JD.com, Meituan, and Pinduoduo have been quick to adapt to the new standards while continuing to grow their market share at Alibaba’s expense. Rivalry, in both its core e-commerce business and in new business areas such as community-based purchasing, it seems will only be getting fiercer.”

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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 -34.26% return in the past 3 months.

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