Here’s Why SGA Global Growth Strategy Acquired a Position in Alibaba (BABA)

Core Insights - SGA's Global Growth Strategy experienced a portfolio return of -2.3% (Gross) and -2.5% (Net) in Q3, underperforming against the MSCI ACWI's 7.6% and MSCI ACWI Growth's 9.0% returns, primarily due to a lack of alignment with current market trends favoring AI [1] - The investment objective of SGA is to focus on high-quality growth businesses that are expected to achieve consistent mid-teens earnings growth, along with stable revenue and cash flow [1] Company Highlights - Alibaba Group Holding Limited (NYSE:BABA) was highlighted as a key stock in SGA's Q3 2025 investor letter, with a one-month return of -1.51% and a significant 82.11% increase in value over the past 52 weeks [2] - As of January 2, 2026, Alibaba's stock closed at $155.74 per share, with a market capitalization of $371.601 billion [2] - SGA initiated a position in Alibaba during the quarter, noting the company's organizational transformation that has enhanced its pricing power, growth visibility, and management execution [3] - Alibaba's mission aligns with China's national agenda to pursue AI leadership and transition to a consumption-driven economy, indicating its strategic importance in the current market landscape [3]