George Soros Exits, Tiger Global Reduces Alibaba Group Holding Ltd (NYSE:BABA)
Alibaba Group Holding Ltd (NYSE:BABA) has so much hanging around it these days, and much of it is unpleasant. From missing profits expectations in the latest quarter to trouble in the Chinese economy, all is not well with the e-commerce giant. It is also emerging that hedge funds are selling out of the stock. George Soros’ Soros Funds Management has disclosed in regulatory filings that it sold almost its entire stake in Alibaba during the second quarter 2015.
In its quarterly regulatory filings for the second quarter, Soros Funds Management disclosed that it almost discarded Alibaba Group Holding Ltd (NYSE:BABA) from its equity position during the latest quarter. The fund had 4.4 million shares in Alibaba at the end of the first quarter 2015 (March), a stake that was valued at $370 million. However, at the end of the second quarter (June), the fund only held 60,000 shares in Alibaba, a stake worth just about $4.88 million.
Tiger Global also disapproves Alibaba
It seems Soros Funds Management took note of impending trouble at Alibaba early enough, selling a significant amount of shares in the company before the lukewarm quarterly financial results. The other large institutional investor that has significantly reduced exposure to Alibaba is Tiger Global Management. The fund owned 6.7 million shares in the company at the end of the first quarter, but disclosed owning only 93,494 shares in the company at the end of the second quarter.
Yahoo! Inc. (NASDAQ:YHOO) and SoftBank remain the two largest of Alibaba’s shareholders, with stakes of about 15.3% and 31.8%, respectively.
Alibaba announces $4 billion buyback plan
Alibaba Group Holding Ltd (NYSE:BABA) failed to meet profit expectations in the latest quarter, with revenue growth also slowing down in the quarter. The company has announced a $4 billion stock repurchase program for the next two years, a move that is clearly aimed at trying to shore up the share price.
Things earlier appeared smooth for Alibaba, but challenges are quickly catching up with the company. Efforts by Alibaba to expand in the U.S. have suffered setbacks, with the company selling its U.S.-focused properties, like the 11 Main marketplace.
With large institutional investors like Soros selling out of Alibaba Group Holding Ltd (NYSE:BABA), perhaps a time has come for everyone to evaluate their stakes in the company.
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