Alibaba (BABA, Financial) is one of the largest internet platforms in China and a market leader in several businesses, including e-commerce, cloud computing and fintech (via the company’s partial ownership in Ant Financial). The management team has proven itself to be quite astute and has used its significant data advantage to position the company at the forefront of several technological trends in China. We believe Alibaba will continue to enjoy robust 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 enabled us to pick up shares at a significant discount to our estimate of intrinsic value.
From David Herro (Trades, Portfolio)'s Oakmark Global Fund second-quarter 2020 shareholder commentary.
