The Alibaba Group Holdings (Baba) fell to ~ 50% tariff for Chinese goods

Patient Capital Management, a value investment company, published the second quarter of 2025 investor's letter “Patient Capital Opportunity Equity Strategy”. A copy of the letter can be downloaded here. The strategy achieved an overall return of 15.3% of the fees in the quarter compared to the undisclosed benchmark of the strategy in the quarter, the return of 10.9% of the S&P 500 index. According to a three-factor performance description model, the selection effect contributed positively to the performance of the portfolio, which was partially compensated for by allocation and interaction effects. You can also check the top 5 of the funds in 2025 to know your best selection.

In his second quarter of 2025 Investor Letter, the strategy for the equity strategy of patient Capital Opportunity stocks such as the Alibaba Group Holding Limited (NYSE: BABA) emphasized. The Alibaba Group Holding Limited (NYSE: BABA) offers technology infrastructure and marketing range. The one -month return of the Alibaba Group Holding Limited (NYSE: BABA) was 3.80% and its shares 55.84% of its value in the past 52 weeks. On July 17, 2025, the Alibaba Group Holding Limited (NYSE: BABA) share closed $ 117.30 per share with a market capitalization of $ 279.874 billion.

The equity strategy for patient capital opportunities gave the following in relation to the Alibaba Group Holding Limited (NYSE: BABA) in the second quarter of 2025 Investor Letter:

“Alibaba Group Hold Limited (NYSE: BABA) sold at the beginning of the quarter according to President Trump's “Liberation Day” tariff, which imposed Chinese goods ~ 50% tariffs. When the United States and China moved in the direction of preliminary agreements, the stock began to recover. Basically, we still see an attractive setup. Alibaba benefits from the acceleration of the AI initiatives, the renewed dynamics in its Tmall platform and quick growth in immediate shopping and local services. These trends support a broader turn into core trading and digital services. Despite this tailwind, the company acts with only 11.2 times, far below the historical average values, and continues to return capital to shareholders through a dividend yield of 1% and a robust buyback program. We believe that Alibaba remains significantly undervalued in relation to its parts and see a meaningful advantage if the basics stabilize and improve the mood. “

An e-commerce platform with a variety of products for customers online.

The Alibaba Group Holding Limited (NYSE: BABA) is located in the 17th position on our list of 30 most popular shares under hedge funds. According to our database, 125 hedge fund portfolios held the Alibaba Group Holding Limited (NYSE: BABA) at the end of the first quarter, which was 107 in the previous quarter. While we recognize Baba's potential as an investment, we believe that certain AI shares offer higher upward potential and form a less downward risk. If you are looking for an extremely undervalued AI population that also benefits significantly from tariffs from the Trump era and the onshoring trend, you will find our free report on the Best short-term AI.