Distillate Capital Partners LLC, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. Distillate’s U.S. FSV strategy declined 19.63% through Q3 of 2022 compared to a decline of 23.87% for the S&P 500 benchmark. This more mitigated decline came despite a 1.75% headwind from being underweight in the energy and utility sectors where cash flow instability and leverage tend to limit our holdings domestically. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, Distillate Capital mentioned Alibaba Group Holding Limited (NYSE:BABA) and explained its insights for the company. Founded in 1999, Alibaba Group Holding Limited (NYSE:BABA) is a Hangzhou, China-based multinational technology company with a $184.3 billion market capitalization. Alibaba Group Holding Limited (NYSE:BABA) delivered a -42.65% return since the beginning of the year, while its 12-month returns are down by -57.47%. The stock closed at $68.13 per share on November 08, 2022.
Here is what Distillate Capital has to say about Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2022 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA), which lagged the benchmark in the quarter, was the largest increased position in the portfolio, up 75 basis points to a 3% weight. The stock is down
roughly 75% from its peak and oϦers an attractive 7% FCF to EV yield, with a net cash position on its balance sheet.”
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Our calculations show that Alibaba Group Holding Limited (NYSE:BABA) ranks 13th on our list of the 30 Most Popular Stocks Among Hedge Funds. Alibaba Group Holding Limited (NYSE:BABA) was in 106 hedge fund portfolios at the end of the second quarter of 2022, compared to 100 funds in the previous quarter. Alibaba Group Holding Limited (NYSE:BABA) delivered a -25.29% return in the past 3 months.
In November 2022, we also shared another hedge fund’s views on Alibaba Group Holding Limited (NYSE:BABA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.