Charlie Manger (Buffett's right hand) never delays with the publication of quarterly reports. Therefore, Daily Journal is the company he manages, recently published a report for the 1st quarter of 2022. From which it became clear that Manger reduced his stake in Alibaba 2 times.

In 1 square. 2021, Manganger bought 165,000 stakes Alibaba, 3 square meters. 2021 - 136,000 shares, 4 square meters. 2021 - 300,000 shares.

And in 1 square. 2022 he decided to sell 302,000 shares (that is, about 50% of the share). The news swept sharply at the investment world, because Charlie Manbon is one of the most famous investors, and Alibaba is one of the most popular among investors.

What reasons prompted the investor to radically change their position?

Investors using growth strategy sell their shares if they became too expensive, or the company ceases to meet the requirements of the investor.

Is it possible that Manther no longer sees the potential in Alibaba? It is strange, since risks surrounding Alibaba gradually dissipate.

However, in recent months, all concerns were dispelled. Of course, risks always exist and, perhaps, Charlie Manther knows that we do not know.

In addition, the issues related to:

Perhaps Manger analyzed these situations and realized that the situation had changed. But why did he sold only half?

Possible causes of sales

One of theories: Manganger converted a 50% stake in Alibaba to Hong Kong. Many investors converted American depository receipts to Hong Kong to cover the risk of delusive in dollars.

But again, if Manger was worried about delisting, then why only 50% of the shares translated? Perhaps he managed to sell only half for 1Q. 2022 years. We will learn exact answer to this question in July.

Another reason: maybe Manger noticed a new investment opportunity and decided to use it. Charlie Manger recently admitted that he has exhausted all the excess cash

Since, the report did not have new shares, it was probably he could acquire them outside the United States. But what could he buy? Maybe he invested in the frequent market of Russia?

Next reason: Possible purchase of alibaba shares on credit. Recently, Charlie Manbon told about how the margin account actually uses the Daily Journal portfolio.

From 3 to 4 square meters. 2021 Margin duty rose $ 32 million to $ 69 million and the only thing that happened in the portfolio is the purchase of alibaba shares.

Of course, Daily Journal did not worry to get Marin Call. They simply counted that the possession of a large number of alibaba shares with margin probably should not risk. Therefore, they decided to reduce the share of borrowed funds.

Perhaps it was the requirement of a new gene. Director. Maybe he was not satisfied with margin duty, and he wanted to reduce this risk.

This leads to the following hypothesis: Does Manger himself really sold the promotions, given that he recently left the post of Chairman Daily Journal? Thus, a new gene. The director independently could sell alibaba shares.

Daily Journal All 2021 bumps alibaba shares and every time at a lesser price. Then in 2022 she changes dramatically tactics and sells half of its positions in the same quarter when Charlie Mangani leaves the Chairman's post. Perhaps this is the share of truth.

On the other hand, in the company's reports it was said that Manger would continue to work as a director, as well as, would continue to pay special attention to the issues with which he was associated in the past (including the company's securities portfolio).

That's all, thanks for your attention!

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