- 10 Alibaba investors may have seen their combined stakes fall in value by $1.4 billion this quarter.
- Ray Dalio, Al Gore, and Charlie Munger potentially took a hit from Alibaba’s plunging stock price.
- Ken Fisher, Jeremy Grantham, Bill Miller, and Steve Cohen were also shareholders as of June 30.
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Alibaba’s US-listed shares have plunged by more than 25% to a record low since the end of June, as investors continue to dump Chinese stocks in response to mounting regulatory threats. A group of 10 top stock-pickers – including Ray Dalio, Cathie Wood, and Warren Buffett’s right-hand man, Charlie Munger – potentially saw $1.4 billion wiped off the combined value of their Alibaba holdings as a result.
Fisher Asset Management, run by billionaire investor Ken Fisher, held over 14 million Alibaba shares worth $3.2 billion at the end of June. The e-commerce group’s tumbling stock price has erased nearly $860 million of the position’s value over the past seven weeks, assuming Fisher hasn’t bought or sold any shares.
Similarly, Generation Investment Management – founded and chaired by Al Gore, the former US vice president – owned 3.9 million Alibaba shares worth almost $890 million on June 30. The Chinese tech selloff has slashed the value of that position on paper by $238 million since then.
Dalio’s Bridgewater Associates has taken a $86 million hit on Alibaba, Jeremy Grantham’s GMO has suffered a $62 million blow, and David Tepper’s Appaloosa Management and Bill Miller’s Miller Value Partners have each seen the value of their positions fall by about $35 million, assuming none of them have cut bait in recent weeks.
Wood’s Ark Investment Management, which held about 463,000 Alibaba shares at the end of June, would have seen its position drop in value by $28 million this quarter. However, it sold over 150,000 shares on Monday alone, cutting its losses.
Meanwhile, Steve Cohen’s Point72 Asset Management may have registered a $27 million hit to its Alibaba stake this quarter, and its calls on another 150,000 shares could be worth markedly less today. Daily Journal – which counts Munger as its chairman and investment manager – only bought into Alibaba in the first quarter of this year, but could be down $10 million on that bet today.
Finally, Leon Cooperman’s family office boosted its Alibaba stake from 85,000 shares to 100,000 shares last quarter, meaning its investment may have slumped by $6 million in value this quarter.
Of course, Alibaba’s stock price could rally and most of these investors’ positions would bounce back, assuming they haven’t followed Wood’s lead and sold some shares. But for now, the $1.4 billion blow to their portfolios underscores how much money they’ve plowed into the Chinese tech giant, and the risks that come along with that bet.