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Outlook: three hedge funds on ali rushed to subscribe ali stock

Language: the CNBC report on Thursday, three big hedge fund investors to alibaba showing interest in information (rolling) IPO, including the Third Point Dan Loeb (Dan Loeb), Appaloosa Mangement of David Tepper (David Tepper) and Andor Capital Management of Benton Dan (Dan Benton).



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Hedge funds seem to be eager for alibaba's stock.


This will be on September 19 the IPO (initial public offering) of Chinese e-commerce giant, has now attracted the so-called "smart money" (smart money). The billionaire Leon mann cooper (Leon Cooperman) is one of the fans of alibaba.


"We are satisfied with the status so far, Mr Ma and his management team's performance was very impressive." Cooper said in an E-mail, he founded the Omega Advisors, a hedge fund size of $10.4 billion. He added that he had met with alibaba executives, and plans to immediately after the company listed on the stock investment.


The other three big hedge fund investors also showed strong interest to alibaba's IPO, including the Third Point Dan Loeb (Dan Loeb), Appaloosa Mangement of David Tepper (David Tepper) and Andor Capital Management of Benton Dan (Dan Benton). According to the participants, their three people were involved in the alibaba wal-mart doffer hotel in Manhattan on Monday at the roadshow for the first time. The total number of about 800 people attended the roadshow.


But a spokesman for the three companies have declined to comment, some have not yet responded. Loeb before ever investment in yahoo (43.1, 0.53, 1.25%), he has called the alibaba is yahoo's "invisible treasure", as well as the key elements of his investment in yahoo.


It is reported that this week in New York and Boston finished two days after the roadshow, alibaba's IPO is oversubscribed. The news is still unable to be confirmed. A Morgan Stanley (32.05, 1.01, 3.25%) bankers this week for a hedge fund employees also said that "inquiry is in progress," the stock demand from around the world. But the banker refused to say whether the stock is oversubscribed, and the proportion of oversubscription.

  

Alibaba spokesman declined to comment. As the IPO underwriters, credit suisse (13.14, 0.78, 6.31%), deutsche bank, Goldman sachs (161.27, 2.32, 1.46%), j.p. Morgan chase (66.59, 0.94, 1.43%), Morgan Stanley and citigroup are rejected or response has not yet been published. Main technology stocks of large hedge funds also have no comment, including Coatue Management, Viking Global Investors, JAT Capital Management, Discovery Capital Management, Maverick Capital and Jericho Capital Asset Management.


Some hedge funds have bought alibaba shares through private markets, including the famous Tiger Global Management company (Tiger Global Management) and Glade Brook Capital Partners. As for whether he planned to continue to hold alibaba in the IPO shares, or whether to buy more alibaba stock, both companies declined to comment.


Declined to be named, a hedge fund manager explained his bullish sentiment on alibaba. "Obviously, a lot of people are very encouraging." He said after attending the roadshow on Monday, "every fund subscription money."


The fund manager has two big alibaba by softbank and yahoo shareholders invest in the stock for a long time, but still plans to participate in the IPO. The fund manager expounds the multiple reasons for optimism.


First of all, alibaba is expected to continue to earn more revenue by moving the end, it has to do with Facebook (128.27, 0.18, 0.14%) before the success is very similar to get rid of the dependence on desktop users. Assuming that the continued growth of mobile terminal he expects alibaba net profit will be close to $10 billion in 2015, and bankers expect of alibaba for $7 billion. Therefore, he thinks, alibaba's valuation will exceed $300 billion - about an estimated $100 billion more than others.


Second, China's huge potential market. He pointed out that China's credit card use is low, and alibaba's pay treasure to dominate. He thinks, pay treasure to valuations alone can reach $30 billion to $40 billion.


Alibaba, according to the prospectus of the IPO issue price will be between $60 to 66. While the fund managers believe that alibaba stock price will rise to $100 a share. "This deal will very hot, and gain high proportion of oversubscribed." He said.


Although generally optimistic about the alibaba IPO market, but there is a fund manager seems to be cautious.

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Although we are optimistic about the alibaba's fundamentals, we have repeatedly called on the company in China, but there are some reasons to make us cautious in the short term for the stock. ", Graves Will Graves said in an email, he was in charge of the hedge fund Boardman Bay Capital Management dimension of about $200 million.


Graff stone softbank and yahoo indirectly holds the alibaba stock. He said Boardman Bay has also subscribed alibaba's new shares, if the final pricing in 60 to $66 range, he plans to invest.


"Unlike most ipos, there are a large number of shares of free trade in the private market circulation. In fact, we have been in the past few years see countless deals in private markets." Graves said, "the IPO of huge scale, add in the private market circulation lifted stocks, but not in its debut may cause beyond normal profit-taking."


Alibaba, according to the prospectus (Silver Lake), Silver Lake capital Asia Alternatives Management and Siguler Guff private-equity firms are prepared to sell part of alibaba shares in the IPO.