JB Global Capital Highlights Alibaba (BABA)’s AI and Cloud Growth at 18x Earnings

Core Insights - JB Global Capital reported an 8.9% decline in Q4 2025, primarily due to a significant drop in Alibaba, its largest holding, while global markets experienced modest gains [1] - Despite the quarterly setback, the fund achieved a strong full-year return of 67.5% and has delivered 108.9% returns since inception, outperforming major benchmarks [1] - The fund's strategy focuses on avoiding mega-cap tech companies due to valuation discipline, with an emphasis on fundamentals for long-term performance [1] Company-Specific Insights - Alibaba Group Holding (NYSE:BABA) experienced a 34% year-over-year growth in cloud revenue and nine consecutive quarters of triple-digit revenue growth in AI-related products [2] - At the end of Q4 2025, Alibaba's stock traded at approximately $146 per share, with $41 billion in net cash and nearly $35 billion in quarterly revenue from core businesses [2] - JB Global Capital reduced its exposure to Alibaba by about 10% at $172 per share after an 85% price increase, indicating a shift in the risk/reward profile rather than a loss of confidence in the company's value [3]