(Bloomberg) — Shares of Alibaba Group Holding are headed toward their second-best quarter since the e-commerce giant’s record-setting initial public offering two years ago. And hedge funds are missing out.

The Chinese company’s U.S.-traded stock jumped as much as 38% since the end of June to a 21-month high after hedge funds pared their holdings by 2.2 million shares in the previous three months, effectively foregoing around $61 million in profits, according to Bloomberg data.

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