Hong Kong-based Oriental Harbor Investment Master Fund took a new stake in Alibaba Group Holding Limited (BABA -2.37%) in the third quarter, establishing a position valued at approximately $39.5 million as of September 30, according to an SEC filing released on Tuesday.
What Happened
According to a U.S. Securities and Exchange Commission (SEC) filing released on Tuesday, Oriental Harbor Investment Master Fund initiated a new position in Alibaba during the third quarter. The fund purchased approximately 221,003 shares, with an estimated transaction value of $39.5 million, based on the quarter’s average price. The position accounted for 3.1% of the fund’s reportable U.S. equity assets as of September 30.
What Else to Know
This new position now accounts for 3.1% of the fund’s 13F reportable AUM as of September 30.
Top holdings after the filing:
- NASDAQ:NVDA: $236.2 million (18.3% of AUM)
- NASDAQ:GOOGL: $224.1 million (17.4% of AUM)
- NYSEMKT:FNGU: $144.6 million (11.2% of AUM)
- NASDAQ:TQQQ: $124.2 million (9.6% of AUM)
- NASDAQ:META: $99.5 million (7.7% of AUM)
As of Tuesday's market close, Alibaba shares were priced at $162.86, up 51% over the past year and well outperforming the S&P 500's 13% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Tuesday) | $162.86 |
| Market Capitalization | $388 billion |
| Revenue (TTM) | $140 billion |
| Net Income (TTM) | $20.5 billion |
Company Snapshot
- Alibaba offers digital retail platforms (Taobao, Tmall), wholesale marketplaces (1688.com, Alibaba.com), international e-commerce (AliExpress, Lazada, Trendyol, Daraz), logistics (Cainiao), cloud computing, digital media, and AI services.
- It generates revenue primarily through e-commerce transactions, marketing services, cloud computing, logistics solutions, and digital entertainment, leveraging a platform-based business model.
- The company serves merchants, brands, retailers, and consumers in China and internationally, targeting both businesses and individual buyers across multiple sectors.
Alibaba Group Holding Limited is a leading global technology and e-commerce conglomerate with a diversified portfolio spanning digital commerce, cloud computing, logistics, and digital media. The company leverages its extensive ecosystem and technology infrastructure to drive growth across multiple business segments. Alibaba's scale, integrated platforms, and innovation capabilities provide a competitive edge in both domestic and international markets.
Foolish Take
Hong Kong-based Oriental Harbor Investment Master Fund took a $39.5 million stake in Alibaba Group Holding last quarter—a notable diversification move for a fund dominated by U.S. tech giants like Nvidia, Alphabet, and Meta Platforms, which together make nearly half its portfolio. The addition of Alibaba, now roughly 3% of its reported U.S. equity assets, reflects a calculated shift toward Chinese tech exposure amid signs of recovery in the sector.
Alibaba’s latest quarterly results highlight that rebound. For the period ended June 30, the company reported $34.6 billion in revenue, up 10% on a like-for-like basis (excluding revenue from the disposed businesses of Sun Art and Intime). Its Cloud Intelligence Group grew sales by 26%, with AI-related product revenue rising triple digits for the eighth straight quarter.
While profit margins narrowed due to heavy investments in quick commerce and user acquisition, Alibaba remains cash-rich and continues share buybacks, with $19.3 billion still authorized through 2027. For Oriental Harbor, the new position offers exposure to one of China’s most diversified tech ecosystems at a time when AI-driven growth is reshaping both global and regional markets.
Glossary
13F reportable AUM: Assets under management in U.S. securities that must be disclosed in quarterly SEC Form 13F filings.
Quarter: A three-month period used by companies and funds for financial reporting and analysis.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or share held in a company by an investor or fund.
Outperforming: Achieving a higher return or growth rate than a benchmark or comparable investment.
Platform-based business model: A business structure that connects users, producers, and consumers through a central digital platform.
Transaction value: The total dollar amount paid to acquire a security or asset.
Digital media: Content and services delivered electronically, including video, music, and online entertainment.
Logistics: The management of the flow of goods, services, and information from origin to consumption.
Cloud computing: Delivery of computing services like storage and processing over the internet, rather than on local servers.
AI services: Technology solutions that use artificial intelligence to automate tasks or provide insights.
TTM: The 12-month period ending with the most recent quarterly report.
