- Switzer Report - https://switzersuperreport.com.au -

Alibaba – great Chinese exposure on the US market

How long have you held the stock?

Alibaba is due to list on the New York Stock Exchange on the 19th of September 2014. We are bidding for shares in the IPO process. Depending on our allocation of shares from the IPO, we may potentially buy more in the aftermarket, if the opening price is reasonable.

The K2 International Funds, however, have had some exposure to Alibaba primarily via our investments in Softbank and, more recently, Yahoo! Both Softbank and Yahoo! were early investors in Alibaba and they hold 34% and 22.4% of the company respectively. Yahoo! is expected to sell 6% of its holding in the IPO, whereas Softbank is expected to maintain its holding.

What do you like about it?

Alibaba is a company we are interested in, as it is positioned across a number of long-term structural growth drivers that we look for in a company.