Peterson Investment, an investment management firm, released its “Peterson Investment Fund I” second-quarter 2025 investor letter. During the quarter, the fund declined by 10.1%, compared with a 10.9% gain in the S&P 500 including dividends. Despite the short-term setback, Peterson Investment Fund I remains ahead on a year-to-date basis, returning 13.6% net to investors versus the S&P 500’s 6.2% return. Looking further back, the firm highlighted its long-term record of compounding capital. Since its inception nearly 13.75 years ago, the fund has transformed a $1 million initial investment into $4.2 million net of fees, equating to an annualized return of 10.9%. Management emphasized that this enduring double-digit performance reflects the strength of its disciplined, value-based, and research-driven strategy, as well as its continued focus on alignment with investor interests. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025. A copy of Peterson Investment Fund’s Q2 2025 investor letter is available for download here.
One of the companies mentioned in the letter is
Alibaba Group Holding Limited
(NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage with their users and customers in the People’s Republic of China and internationally. Over the past month, Alibaba Group Holding Limited (NYSE:BABA) rose by 34.44%, and its shares gained 71.79% of their value over the last 12 months. On September 22, Alibaba Group Holding Limited (NYSE:BABA) shares closed at $164.25, with a market capitalization of $400.892 billion.
Here is what they have to say about Alibaba Group Holding Limited (NYSE:BABA) in their investor letter:
“The market’s current sentiment toward Chinese equities has created a significant dislocation between Alibaba Group Holding Limited’s (NYSE:BABA) intrinsic value and share price. After reaching a 52-week high of nearly $150 in late March, Alibaba’s ADRs fell over 30% to under $100 and remain near this significantly undervalued price. Given our portfolio’s exposure through multi-year option contracts, this volatility produces material mark-to-market price swings. However, these low prices are temporary, and the price today is not reflective of the company’s underlying fundamentals. Alibaba has the capacity to generate and return enormous amounts of cash to shareholders in the coming years.
