5 Best Tech Stocks to Buy According to Anand Parekh’s Alyeska Investment

3. Adobe Inc. (NASDAQ:ADBE)

Alyeska Investment’s Stake Value: $147 million

Percentage of Alyeska Investment’s 13F Portfolio: 1.68%

Number of Hedge Fund Holders: 92

Adobe Inc. (NASDAQ:ADBE) is a technology company that enables its customers to develop content and manage customer experiences. The firm deals directly with enterprise customers and it is based in San Jose, California.

As part of its Q2 2022 holdings, Alyeska Investment owned a $147 million stake in Adobe Inc. (NASDAQ:ADBE). This made up 1.68% of the firm’s investment portfolio. Insider Monkey’s second quarter of 2022 survey of 895 hedge funds revealed that 92 had also invested in the company.

Adobe Inc. (NASDAQ:ADBE) has managed to grow its revenue consistently for the past ten years and its operating income for the last six years. Additionally, it is one of the strongest firms in the industry in terms of free cash flow to revenue margin, with the latest figure showing that out of every $100 in revenue, the firm generates $41.50 in free cash flow.

Adobe Inc. (NASDAQ:ADBE)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 6.1 million shares that are worth $2.2 billion.

Polen Capital mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

We expect the company to continue to grow earnings at a highteens or better rate for the foreseeable future on the back of robust secular growth tailwinds in digital content creation and consumption. Adobe’s tools are the de facto standards for various applications such as graphics and video editing. In addition, Adobe stands to be a leader in providing tools for creators to develop aspects of the immersive internet (metaverse) as that develops as well.