Alibaba Group Holding Ltd (BABA)

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Alibaba (BABA): A Detractor for Miller Value Partners’ Portfolio in Q4’20
By: Insider Monkey | February 15, 2021

Miller Value Partners, an investment management firm, published its ‘Opportunity Equity’ fourth-quarter 2020 Investor Letter – a copy of which can be seen here. A net return of 35.4% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 benchmark that delivered a 12.15% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Miller Value Partners, in their Q4 2020 Investor Letter, said that Alibaba Group Holding Limited (NYSE: BABA) was a top detractor for their portfolio in the fourth quarter of 2020. Alibaba Group Holding Limited is an e-commerce company that currently has a $730.4 billion market cap. For the past 3 months, BABA delivered a 2.69% return and settled at $267.85 per share at the closing of February 12th.

Here is what Miller Value Partners has to say about Alibaba Group Holding Limited in their Q4 2020 investor letter:

"Alibaba (BABA) had quite the quarter rising up to a high of $317 in October only to end the quarter down 20% after the delay of the Ant IPO and the announced investigations by the Chinese government into monopolistic practices at the firm. There was additional pressure on the stock as the US House of Representatives passed a bill that threatens to delist Chinese companies from US exchanges unless US regulators are able to inspect their financial audits within three years. During the quarter, the company increased their share buyback program from $6B to $10B. The company report second quarter FY21 results that were largely in-line with expectations. The company reported revs of Rmb155.1B (USD 23.9B) slightly beating consensus of Rmb 153.9B (USD 23.7B) and adjusted EBITDA of Rmb 47.5B (USD 7.3B) versus 41.3B (USD 6.3B). The company maintained full year guidance for revenues of Rmb 650B (USD 100.3B)."

Just recently, we published an article about Polen Capital Management's Alibaba Group Holding Limited (NYSE: BABA) investment thesis. BABA delivered a 21.96% return in the past 12 months.

Our calculations show that Alibaba Group Holding Limited (NYSE: BABA) ranks 4th in our list of the 30 most popular stocks among hedge funds.

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