Alibaba Group Holding (BABA) Limited Reported a Good Q3

Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that released its third quarter 2025 investor letter for the “Baird Chautauqua International and Global Growth Fund”. A copy of the letter can be downloaded here. Global equity markets delivered solid results in the third quarter, driven by the resolution of significant trade conflicts and a shift in U.S. monetary policy toward a more dovish stance. Baird Chautauqua International Growth Fund underperformed the benchmark, MSCI ACWI ex-U.S. Index - ND, in the quarter, driven by stock selection in the information technology, financials, and industrials sectors, which detracted the most from returns. The Baird Chautauqua Global Growth Fund also trailed the benchmark, MSCI ACWI Index – ND, in the quarter as stock selection in the information technology, financials, and industrials sectors detracted the most from returns. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Baird Chautauqua International and Global Growth Fund highlighted stocks such as Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach. The one-month return of Alibaba Group Holding Limited (NYSE:BABA) was -8.55%, and its shares gained 73.79% of their value over the last 52 weeks. On December 30, 2025, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $147.36 per share, with a market capitalization of $147.36 billion.

Baird Chautauqua International and Global Growth Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its third quarter 2025 investor letter:

"Alibaba Group Holding Limited (NYSE:BABA) delivered a good quarter, with better-than-expected performance in both its e-commerce and cloud businesses. E-commerce growth was driven by Quick Commerce and improvement of take rate, which benefited from the addition of software service fees in September 2024. Cloud revenue grew 26%; AI-related product revenue accounted for over 20% of external customer revenue and is expected to accelerate further in the coming quarters."

Alibaba Group Holding Limited (NYSE:BABA) is in the 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 130 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the third quarter, which was 101 in the previous quarter. In the fiscal first quarter of 2026, Alibaba Group Holding Limited (NYSE:BABA) reported revenue of RMB 247.7 billion. While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Alibaba Group Holding Limited (NYSE:BABA) and shared the list of best stocks to buy and hold for 2026. Alibaba Group Holding Limited (NYSE:BABA) contributed to Baron Emerging Markets Fund's performance in Q3 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.