Hedge fund Third Point ups stake in Alibaba to 10 million shares

By Luciana Lopez

NEW YORK (Reuters) - Third Point, one of the hedge fund industry's most closely watched funds, increased its stake in Chinese e-commerce site Alibaba during the fourth quarter, according to a regulatory filing late on Friday.

Third Point, run by Daniel Loeb, increased its stake in Alibaba by 38.9 percent to 10 million shares.

Alibaba's record $25 billion initial public offering was met with great fanfare last year, attracting big purchases from hedge funds managers eager for exposure to a company frequently referred to as the 'Amazon of China.'

Third Point also added a new position in Citigroup by buying 5 million shares.

In another regulatory filing on Friday, David Tepper's Appaloosa Management hedge fund revealed that it had dissolved its share stake in Alibaba during the fourth quarter.

U.S. regulators require large investors to disclose their stock holdings every quarter, and the disclosures can offer a window to their strategies for buying and selling stocks. Friday's filings disclosed holdings as of the end of the fourth quarter.

(Reporting by Luciana Lopez; Editing by Bernard Orr)