Top 5 Stock Picks of Ray Dalio

3. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 115  

Alibaba Group Holding Limited (NYSE:BABA) is a diversified technology company. In the filings for the third quarter, the fund detailed that it owned 3.2 million shares of the company worth $487 million, representing 2.66% of the portfolio.  

Truist analyst Youssef Squali has a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock with a price target of $200. In a recent investor note, the analyst lauded the “thorough job” the company did in outlining future growth catalysts at an investor conference. 

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE:BABA) with 14 million shares worth more than $2 billion. 

In its Q1 2021 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:

“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second largest position in the Portfolio.”