Sustainable Growth Advisers (SGA) initiated a new position in Alibaba. The firm reported this decision in its third-quarter 2025 investor letter, released on January 5, 2026.
SGA cited Alibaba’s significant organizational transformation as a key driver. This transformation improved pricing power, growth visibility, and management execution.
Furthermore, Alibaba’s mission now aligns closely with China’s national goals. These goals include achieving leadership in artificial intelligence and transitioning to a consumption-driven economy.
SGA’s investment thesis relies on Alibaba’s foundational strengths. The firm expressed confidence in its dominant e-commerce and cloud computing platforms, alongside its expanding AI capabilities.