Okay, maybe there aren’t forty, but certainly more than four, hedge fund managers that have gotten major booty from Alibaba after picking it up pre-IPO for a steal.
John Paulson of Paulson & co. bought shares of Alibaba pre-IPO at $56. Paulson & co. was one of the fortunate few funds to get additional allocation at $68, as reported by CNBC, and now the stock is trading at $94. This should be a bright point of Paulson after a disappointing year for the fund, which has declined 22%.
Other fund managers who have made huge wins on the Alibaba bet include Dan Loeb of Third Point, who revealed that Alibaba is one of its top five biggest winners in the third quarter. The fund is up 6% for the year. Stephen Mandel’s Lone Pine Capital reportedly has a decent stake in the Chinese ecommerce play which is expected to have growth more explosive than Amazon’s.