Ownership in Alibaba Group Holdings is on the rise among active Greater China managers. Peaking in October 2020 at 88.6% of funds invested, the subsequent Tech crackdown saw investors cut exposure, bottoming out at just 53.3% of funds invested in February of this year. The stock price falling below $100 appeared to be a catalyst for active Greater China managers to buy back in, with a sharp intake of new exposure in the proceeding months.
The funds behind the Alibaba rotation are shown in the table below and dominated by Growth and GARP investors. New positions from Invesco Greater China (+6.02%), JP Morgan Greater China (+2.75%)and E Fund Greater China (+2.58%) head a total of 10 funds opening exposure to the name between 04/30/2022 and 10/31/2022.
In the full analysis, we look at how Alibaba’s rise compares to other companies in the Greater China region and the stocks that were sold to make way for Alibaba’s increased allocation. We also view Alibaba versus TSMC and Tencent, noting a significant weight drop in the Chinese majors as TSMC takes the top spot.
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