Alibaba Group Holding Ltd, once the most valuable company in China, is turning from a global hedge fund favourite to something less than desirable.

Investors from hedge fund titans such as Point72 Asset Management and Moore Capital Management to Canadian and US pension funds dumped 101 million of Alibaba’s American depositary receipts in the fourth quarter, cutting the market value of their holdings by US$89 billion ($117.51 billion), according to filing data. It was the biggest investment reduction among US traded companies, more than three times the second-most sold stock, Salesforce.com Inc..

Once a symbol of China’s New Economy, the e-commerce giant founded by Jack Ma now finds itself at the forefront of the government’s campaign to rein in the sprawling power of tech giants. Alibaba’s shares, which are traded on the New York Stock Exchange, have slumped about 18% since November, when regulators in Beijing halted the US$35 billion initial public offering of Alibaba’s affiliate Ant Group at the last minute. Government watchdogs have also ordered Ant to overhaul its business and began an antitrust investigation of Alibaba.

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