Alibaba Group Holding Limited is among the worst-performing large-cap tech stocks in 2021. The weakness did not deter a high-profile investor from bulking up on the shares of the Chinese e-commerce giant.
What Happened:The Charlie Munger-run Daily Journal almost doubled its stake in Alibaba in the fourth quarter, according to a 13F filing by the hedge fund.
At the end of the fourth quarter, Daily Journal owned 602,060 shares in Alibaba valued at $$71.52 million. This compares to the 302,060 shares the fund held at the end of the third quarter. Its stakes in other companies were unchanged in the fourth quarter.
Daily Journal also has positions in U.S. financial services firms Bank of America Corp.,US Bancorp and Wells Fargo & Company, as well as South Korean steel giant POSCO.
Why It's Important:Munger is billionaire investor Warren Buffett's right-hand man and the vice chairman of Berkshire Hathaway Inc..
The Daily Journal started off as a legal newspaper but is now transitioning to become a software company to local court systems. The company uses its cash holdings to invest in equities.
Daily Journal first took a position in Alibaba in the first quarter of 2021 by buying 165,000 shares worth about $37 million.
Alibaba's shares nosedived in 2021. After hitting an all-time high of $319.32 in late October 2020, the stock has gone downhill. It lost a whopping 49% in 2021 alone.
For Daily Journal, Alibaba could turn out to be a bargain buy.
The average analyst rating for Alibaba shares is a Buy and the average price target is $209.60, according to the Yahoo database.
BABA Price Action:Alibaba ended Tuesday's session down 0.7% at $119.56.
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