David Herro Comments on Alibaba

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Apr 08, 2020

Alibaba (BABA, Financial) is one of the largest internet platforms in China and a market leader in several businesses, including e-commerce, cloud and fintech via the company’s partial ownership in Ant Financial. The management team has proven itself to be quite astute and has positioned the company at the forefront of several technological trends in China. We believe Alibaba will continue to enjoy rapid long-term growth, especially since several of its businesses remain underpenetrated and have yet to fully scale. We initiated a position during the quarter as the decline in valuation led to an attractive risk-reward profile.

From David Herro (Trades, Portfolio)'s Oakmark International Fund first-quarter 2020 shareholder commentary.