Will Alibaba (BABA) be Able to Build a Defensible Moat, Leveraging Multiple Consumption Scenarios?

Group 1: JB Global Capital Fund Performance - JB Global Capital's fund gained 38.4% in Q3 2025, reaching an all-time high at quarter-end [1] - Since its inception on January 3, 2023, the fund has returned 76.4%, significantly outperforming its benchmark [1] - The strong performance is attributed to a heavy overweight in Chinese equities throughout 2023 and 2024 [1] Group 2: Alibaba Group Holding Limited (NYSE:BABA) Performance - Alibaba's one-month return was 16.52%, and its shares gained 65.74% over the last 52 weeks, closing at $181.12 on October 8, 2025, with a market cap of $423.304 billion [2] - In the June quarter, Alibaba reported $34.6 billion in revenue and $6 billion in net income, with a strategy focused on aggressive growth leveraging ~$82 billion in cash [3] - Alibaba has entered a price war in the quick commerce space, gaining substantial market share from Meituan while increasing spending only modestly [3] Group 3: Hedge Fund Interest and Future Outlook - Alibaba is the 17th most popular stock among hedge funds, with 101 hedge fund portfolios holding its shares at the end of Q2 2025, down from 125 in the previous quarter [4] - In Q1 2026, Alibaba reported revenue of RMB 247.7 billion [4] - While Alibaba is recognized for its potential, certain AI stocks are suggested to offer greater upside potential with less downside risk [4]