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In this article, you’ll find out if hedge funds think salesforce.com, inc. (NYSE: CRM) is a good investment right now. We like to check out what smart money thinks before we do any extensive research on any given stock. While there have been several failed hedge fund picks, consensus choices among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. This is not surprising given that hedge funds have access to better information and more resources to predict stock market winners.
Is the CRM action a buy or a sale? salesforce.com, inc. (NYSE: CRM) Shareholders have recently seen a decline in enthusiasm for smart money. salesforce.com, inc. (NYSE: CRM) was present in 97 hedge fund portfolios at the end of December. The all-time high for this statistic is 117. Our calculations also showed that CRM was ranked 24th among the 30 most popular stocks among hedge funds (click for fourth quarter ranking).
In the financial world, there are a number of tools available to investors for valuing stocks. Two of the most overlooked tools are hedge fund and insider trading indicators. We have shown that historically those who follow the best picks of the best fund managers can outperform larger indices by a solid amount. Insider Monkey’s monthly stock picks have returned 197% since March 2017 and have outperformed S&P 500 ETFs by more than 124 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points per year (see details here). This is why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Richard Gerson of Falcon Edge Capital
At Insider Monkey, we leave no stone unturned when finding the next great investment idea. Recently, Oregon became the first state to legalize psychedelic mushrooms which were shown to have promising results in the treatment of depression, drug addiction, and PTSD in early university studies. So we check this psychedelic drug stock idea at present. We go through lists like the 10 best biotech stocks to invest in to choose the next stock that will offer a 10x return. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to stock market pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage (or at the end of this article). With all of that in mind, let’s review the new hedge fund action encompassing salesforce.com, inc. (NYSE: CRM).
Do hedge funds think CRM is a good stock to buy now?
Heading into the first quarter of 2021, a total of 97 of the hedge funds tracked by Insider Monkey were bullish on the stock, a -8% change from the previous quarter. The chart below shows the number of hedge funds with a bullish position in CRM over the past 22 quarters. With hedge fund positions experiencing their usual ebb and flow, there is a select group of key hedge fund managers who were significantly increasing their holdings (or had already accumulated large positions).
According to Insider Monkey’s hedge fund database, Ken Fisher’s Fisher Asset Management ranks number one in salesforce.com, inc. (NYSE: CRM), worth nearly $ 2.7799 billion, or 2.1% of its total 13F portfolio. The second largest stake is held by Masayoshi Son of SB Management, with a position of $ 676.9 million; 3.8% of its 13F portfolio is allocated to the company. Other bullish hedge funds and institutional investors include Brad Gerstner’s Altimeter Capital Management, David Goel and Paul Ferri’s Matrix Capital Management, and Chase Coleman’s Tiger Global Management LLC. In terms of the portfolio weights assigned to each position, Greenlea Lane Capital assigned the highest weight to salesforce.com, inc. (NYSE: CRM), around 15.04% of its 13F portfolio. ROAM Global Management is also relatively very bullish on the stock, reserving 14.83% of its 13F stock portfolio for CRM.
From salesforce.com, inc. (NYSE: CRM) has seen a drop in sentiment from the aggregate hedge fund industry, it is safe to say that there are a few select fund managers who have decided to sell all of their holdings before the first one. trimester. At the top of the hierarchy, Robert Pitts’ Steadfast Capital Management sold the biggest investment in the “top crust” of funds monitored by Insider Monkey, valued at $ 178.3 million in stocks, and Ryan Frick’s Dorsal Capital Management and Oliver Evans was right behind the decision, as the fund lost around $ 118.1 million. These movements are important to note, as the overall hedge fund interest was reduced by 9 funds as the first quarter approached.
Now let’s take a look at the hedge fund activity in other stocks – not necessarily in the same industry as salesforce.com, inc. (NYSE: CRM) but valued in the same way. We’ll be looking at Intel Corporation (NASDAQ: INTC), Abbott Laboratories (NYSE: ABT), Oracle Corporation (NASDAQ: ORCL), AbbVie Inc (NYSE: ABBV), Cisco Systems, Inc. (NASDAQ: CSCO), Thermo Fisher Scientific Inc. (NYSE: TMO) and Broadcom Inc (NASDAQ: AVGO). The market values of this share group correspond to the market value of CRM.
[table] Ticker, Number of HF with positions, Total value of HF positions (x1000), Change of HF position INTC, 72.5578824.6 ABT, 64.4303482,2 ORCL, 52.2450210, -4 ABBV, 83.6965013.1 CSCO, 60.4974309.1 TMO, 89.5470797.9 AVGO, 59.3342445.0 Medium, 68.4.4726440.2.1 [/table]Check the table here if you have formatting issues.
As you can see, these stocks had an average of 68.4 hedge funds with bullish positions and the average amount invested in these stocks was $ 4,726 million. That figure was $ 10,576 million in the case of CRM. Thermo Fisher Scientific Inc. (NYSE: TMO) is the most popular share in this chart. On the other hand, Oracle Corporation (NASDAQ: ORCL) is the least popular with only 52 bullish hedge fund positions. In relation to these actions salesforce.com, inc. (NYSE: CRM) is more popular among hedge funds. Our overall hedge fund sentiment score for CRM is 70.9. Stocks with a higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that the 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020 and outperformed the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 5.3% in 2021 through March 19 and still beat the market by 0.8 percentage point. Unfortunately, CRM has not been performing as well as those 30 stocks and hedge funds that bet on CRM were disappointed as the stock has returned -4.6% since the end of the fourth quarter (through at 3/19) and underperformed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the more diverse list of the 30 most popular stocks among hedge funds, as most of these stocks have already outperformed the market since 2019.
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Disclosure: None. This article originally appeared on Insider Monkey.
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