Economic review

Third Point buys 4.5 million shares of stock in Alibaba

2017-08-13 14:08:00 (Beijing Time)         CGTN


Dan Loeb's Third Point hedge fund took a large stake in Alibaba Group Holding, according to regulatory filings late on Friday.

Third Point bought 4.5 million shares of Alibaba during the second quarter that ended on June 30.

Third Point, which earned 4.6 percent in its Offshore Fund during the second quarter, bringing total returns for the year to 10.7 percent. The firm has owned Alibaba shares directly and via its positions in Yahoo and Softbank over the past six years.

In its second quarter letter, Third Point said Alibaba has consistently surpassed its growth estimates for gross merchandise value, revenue, and earnings and currently, the company has achieved scale.

"Alibaba is currently at a positive inflection point after rolling out significant changes over the past year to its advertising platform, which currently generates the majority of the company's revenue," Third Point said.

"We view these changes as an important catalyst for meaningful revenue acceleration over the next few years. Combined with an attractive multiple, we believe now is the time to own Alibaba again."

During the second quarter, Third Point also dissolved its share stake in BlackRock Inc, Snap Inc, Inc and Qualcomm Inc.

According to Reuters, the quarterly disclosures of asset manager stock holdings, in what are known as 13F filings with the US Securities and Exchange Commission, offer clues on what big investors are selling and buying, but given no indication of their current stakes.