Mark Yusko, founder and CEO of Morgan Creek Capital Management, is very bullish on a stock that noted short seller Jim Chanos of Kynikos Associates continues to attack: Alibaba.
"Jim Chanos says [Alibaba] is a fraud. It is not a fraud. It's the largest e-commerce company in the world; it's approaching Amazon for being the largest cloud company in the world; it's the largest payments company in the world," Yusko told investors at the Morningstar ETF conference last week. "It's a monster behemoth."
China's online retail market is the world's largest, with roughly $630 billion in sales last year, according to research by management consulting firm McKinsey & Co.
E-commerce in China is nearly 80 percent bigger than the United States', which it overtook some two years ago. Chinese e-commerce accounts for 13.5 percent of all retail spending, a higher share than that of all large economies except the U.K.
"People just can't comprehend that the middle class in China is bigger than the population of the United States and Europe combined," said Yusko, who runs the Morgan Creek Tactical Allocation Fund and previously managed the endowment offices of Notre Dame University and the University of North Carolina at Chapel Hill.
Yusko expects the double-digit growth for Chinese e-commerce to continue for the next decade. Alibaba's U.S.-traded shares have climbed more than 50 percent in the past year.
"BABA could double from here — easy," Yusko said.