Silver Lake Management reduced the number of shares it oversees in Alibaba Group Holding Ltd. by almost half in the first quarter as it distributed stock to investors on whose behalf it had been managing the positions.
Silver Lake, the biggest technology-focused private equity firm, cut about 25 million shares from its holdings in the Chinese e-commerce company, which debuted in New York last year with the largest ever initial public offering, according to Gemma Hart, a Silver Lake spokeswoman at Brunswick Group.
The Alibaba investment has proven a boon to Silver Lake, which along with its affiliates injected $825 million into the e-commerce operator, including $447 million from its third buyout fund in late 2011. The $26 billion private equity firm, founded in 1999 by Jim Davidson, Glenn Hutchins and David Roux, now holds about 1.2 percent, or almost 30 million shares, of the $219 billion company.
Billionaire Dan Loeb’s Third Point hedge fund exited its stake in Alibaba in the first quarter that was valued at $1 billion at the end of 2014. Third Point, which oversees about $17.4 billion, sold 10 million shares in the Chinese technology company, according to a regulatory filing.
Hangzhou, China-based Alibaba’s shares fell 20 percent in the first quarter after the company reported revenue that missed estimates in January. The stock jumped earlier this month after Alibaba named a new chief executive officer and posted a 45 percent increase in revenue.
It rose 0.1 percent to $88.46 in New York on Friday, extending its rally since the company reported better-than-estimated earnings on May 7 to 11 percent.
Money manager Grantham, Mayo, Van Otterloo & Co. added 13 million shares, or about $1.1 billion based on Alibaba’s March 31 closing price, in the quarter according to an SEC filing.
Fund managers who oversee more than $100 million in equities in the U.S. must file a Form 13F within 45 days of each quarter’s end to list those stocks as well as options and convertible bonds. The filings don’t show non-U.S. securities, holdings that aren’t publicly traded, or cash.