Longleaf Partners, managed by Southeastern Asset Management, released its “International Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 12.25% compared to a 9.36% decline for MSCI EAFE Index. Continued macroeconomic headwinds affected the performance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Longleaf Partners highlighted stocks like Alibaba Group Holding Limited (NYSE:BABA) in the Q3 2022 investor letter. Headquartered in Hangzhou, the People’s Republic of China, Alibaba Group Holding Limited (NYSE:BABA) is a technology company. On November 16, 2022, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $78.16 per share. One-month return of Alibaba Group Holding Limited (NYSE:BABA) was 8.53% and its shares lost 45.57% of their value over the last 52 weeks. Alibaba Group Holding Limited (NYSE:BABA) has a market capitalization of $210.183 billion.
Longleaf Partners made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2022 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA), the largest e-commerce and cloud services provider in China, was the top detractor for the quarter in the face of China and Hong Kong macro concerns. The biggest value driver for Alibaba is domestic consumption, which has been softening in recent months in the face of property sector weaknesses, continuing pressure from the government’s zero-COVID policy and a significant spike in youth unemployment rates (reaching almost 20% in the quarter). We have begun to see some progress, with policies announced to make more financing available to developers to finish uncompleted units. Additionally, COVID containment measures are beginning to ease with Hong Kong recently announcing an end to all quarantine requirements for international arrivals. While we recognize that top-line growth may be constrained in the near term, we believe Alibaba is still well positioned to grow its bottom line at a double-digit rate in coming quarters by reducing costs and reducing spend on strategic initiatives. Our management partners are going on offense through smart capital allocation and increased the buyback authorization in the quarter to $25 billion dollars.”
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Alibaba Group Holding Limited (NYSE:BABA) is in 13th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 105 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the third quarter which was 106 in the previous quarter.
We discussed Alibaba Group Holding Limited (NYSE:BABA) in another article and shared Distillate Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
