After salivating at the Alibaba IPO, hedge fund managers lucky enough to buy in early are indeed getting a nice return kick from the Chinese e-commerce company.
Investment firms that have made money on Alibaba since it went public on Sept. 19 include Viking Global Investors, Third Point, Paulson & Co., Lone Pine Capital, Tiger Global Management and Glade Brook Capital Partners, according to people with knowledge of the portfolios.
Take hedge fund manager John Paulson, for example. Paulson & Co. bought private stock at $56 a share before the IPO, according to a discussion of the position on a call with investors Oct. 17. Paulson was then one of the lucky funds to get an additional allocation at the IPO price of $68 (bankers running the deal reportedly received far more order for stock than they could fill). The stock immediately popped when it hit the public market and now trades at more than $94.
The size of Paulson's position, spread between the firm's Advantage funds and others, is unclear. A spokesman declined to comment. While Alibaba was a winner, Paulson's Advantage fund has declined nearly 22 percent this year through Oct. 14, according to Lyxor data and as first reported by The Wall Street Journal.