Baron Funds released its “Baron Emerging Markets Fund” third-quarter 2025 investor letter, boasting a 10.89% return for the quarter and 31.79% year-to-date, outperforming benchmarks. The fund remains ahead despite Indian equities underperforming. Check out the fund’s top five holdings for 2025 picks.

Alibaba Group Holding Limited (NYSE:BABA) was highlighted in the fund’s investor letter, with a 75.28% gain in the last 52 weeks. The stock closed at $155.96 on December 09, 2025, with a market cap of $372.126 billion. Alibaba is China’s largest retailer and e-commerce company, focusing on cloud infrastructure and AI capabilities.

In the third quarter 2025 investor letter, Baron Emerging Markets Fund expressed confidence in Alibaba’s potential, citing strong cloud revenue growth and quick commerce momentum. Alibaba plans to invest over $53 billion in cloud infrastructure and AI capabilities, emphasizing e-commerce and cloud growth opportunities in China. Competitive concerns remain.

Alibaba Group Holding Limited (NYSE:BABA) ranked 17th among the “30 Most Popular Stocks Among Hedge Funds” in the third quarter, with 130 hedge fund portfolios holding the stock. In the first quarter of 2026, Alibaba reported revenue of RMB 247.7 billion. While Alibaba shows promise, some AI stocks offer greater potential and lower risk. For undervalued AI stock options, check out the free report on the best short-term AI stock.

Read more at Yahoo Finance: Alibaba Group Holding Limited (BABA) Rose Following an Acceleration in Cloud Revenue