Some of the biggest US-based hedge fund managers have unloaded their Alibaba shares by the end of last year, anticipating a lower-than-expected fourth quarter revenue figure from China's e-ecommerce giant, sources said.

The unloading of shares occurred just months after several hedge fund managers in the United States piled into Alibaba following its record initial public offering (IPO) of US$25 billion in September.

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Based on US regulatory filings, many of the hedge funds, mostly those who were early birds in Alibaba's IPO, slashed or dissolved their stake in the company.

The hedge fund managers that unloaded their shares were Leon Copperman's Omega Advisors, David Tepper's Appaloosa Management and Barry Rosenstein's Jana Partners LLC.

Tiger Management, Moore Capital Management and Viking Global Investors LP decreased their stakes from the prior quarter.

The hedge fund managers might be right in their decision to exit Alibaba as the company's shares fell about 27.6 percent on the New York Stock Exchange on Tuesday, settling at US $86.85, from as high as US $120 in November. Alibaba's shares have since then plummeted.

While many of the hedge fund managers slashed or dissolved their stake in Alibaba, there are those who still believe in the power of the Chinese e-commerce giant.

Dan Loeb's Third Point and John Paulson's Paulson & Co increased their stakes in Alibaba, while Tiger Global Management jumped in and took a 5.8 million-share stake.

Soros Fund Management Group, the hedge fund firm founded by billionaire George Soros, kept its stake unchanged at 4.4 million shares.

Optimism remains in some investors, who see the long-term potential of the company.

Mark Yusko, head of the US$4 billion Morgan Creek Capital Management, told Reuters in January that he sees Alibaba as a "dominant franchise," able to capitalize on China's growing consumer market.

Alibaba, founded by Jack Ma, has been on an investment spree last year, acquiring or taking major stakes in technology firms in China and the United States.

TagsAlibaba IPO, Alibaba Investment