The Insider Monkey team tracks the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Third Point because we determined that some of the stocks that they are collectively bullish on can help investors generate above-market returns. Of course, we are not the only ones in the finance space who stumbled upon this phenomenon. For instance, equity strategists at Goldman Sachs compiled the Hedge Fund VIP list, which comprises the 50 most-owned stocks among hedge funds. Fresh news stories reveal that Goldman’s so-called VIP list outperformed the S&P 500 Index on a quarterly basis 64% of the time since 2001 through the end of 2015. It should be noted that this basket of stocks has been lagging behind broader market benchmarks so far in 2016, but there is good reason to believe that hedge funds’ high-conviction ideas tend to beat benchmarks. For that reason, the following article will examine the hedge fund sentiment towards salesforce.com inc. (NYSE:CRM).
salesforce.com inc. (NYSE:CRM) has experienced an increase in activity from the world’s largest hedge funds lately. At the end of this article we will also compare CRM to other stocks including ING Groep N.V. (ADR) (NYSE:ING), Sumitomo Mitsui Financial Grp, Inc. (ADR) (NYSE:SMFG), and HDFC Bank Limited (ADR) (NYSE:HDB) to get a better sense of its popularity.
In the eyes of most shareholders, hedge funds are seen as slow, old investment vehicles of yesteryear. While there are more than 8000 funds in operation at the moment, Our experts choose to focus on the aristocrats of this club, around 700 funds. These money managers shepherd bulk of the hedge fund industry’s total capital, and by keeping track of their matchless equity investments, Insider Monkey has formulated a number of investment strategies that have historically defeated the broader indices. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
salesforce.com inc. (NYSE:CRM), a leading provider of enterprise cloud computing solutions, has been growing at a solid pace in the past several years both organically and through acquisitions of machine learnings and data analysis start-ups. The shares of the developer of cloud-based business software have advanced by 7% over the past 52 weeks despite having lost 10% since the beginning of 2016. The company offers enterprise cloud computing solutions, including apps and platform services, along with services that assist the adoption of those solutions. Its offerings enable companies to grow top-line figures, provide customer service on multiple devices and channels, among other things. salesforce.com inc. (NYSE:CRM)’s total revenues have been growing at a strong rate in the past several years. The company generated total revenues of $6.67 billion during fiscal 2016 that ended January 31, up from $5.37 billion generated in fiscal 2015, $4.07 billion in fiscal 2014, and $3.05 in fiscal 2013. salesforce.com inc. (NYSE:CRM)’s subscription and support revenues for fiscal 2016 (accounted for 93% of total revenues) were $6.21 billion, which increased approximately $1.2 billion or 24% year-on-year. The increase was mainly driven by volume-driven increases from new business, which involved new customers, upgrades and additional subscriptions from its existing customers. The company has also been successful in reducing its customer attrition, which also positively impacted subscription and support revenues.
Now, we’re going to view the fresh action encompassing salesforce.com inc. (NYSE:CRM), as well as reveal some recent thoughts of one Morgan Stanley analyst on salesforce.