Alibaba Group Holding Ltd. (BABA, Financial) is the largest e-commerce company in China and the world. Shares have been declining based on the company lowering its projections for growth as its consumers continue to transition to mobile purchasing, which has inherently lower conversion. The mobile transition combined with slower overall growth in China and an IPO lock-up overhang created greater uncertainty for the road ahead. Accordingly, we sold out of the position in the quarter. We will continue to monitor developments at the company in an effort to gain further conviction on the company’s growth prospects, should we decide to own this business again in the future.
From the Baron Opportunity Fund third quarter 2015 letter.
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