5 Dow Jones Stocks to Buy According to Hedge Funds

3. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 116

San Francisco, California-based Salesforce, Inc. (NYSE:CRM) is the world’s leading customer relationship management platform provider. Its cloud-based platform has applications for sales, service, marketing, and more, with more than 150,000 companies using the platform.

According to the Insider Monkey data on 895 leading hedge funds, 116 hedge funds were long Salesforce, Inc. (NYSE:CRM) shares as of Q2 2022, with the total shares held by hedge funds valued at $7.9 billion. Ken Fisher’s Fisher Asset Management was the largest shareholder on record with ownership of 15.7 million shares valued at $2.6 billion.

This is what Eagle First Investments had to say about Salesforce, Inc. (NYSE:CRM) in its Q2 2022 investor letter:

“Salesforce is a prime example of our big-tent approach to value investing. Though the US-based provider of cloud-based customer-relationship management (CRM) software would be considered a growth stock by many metrics, we believe its profile is suggestive of a business with unrecognized franchise value that may make for an attractive investment opportunity at an appropriate “margin of safety.” Salesforce has a dominant market position in the CRM space, especially in a cloud segment that by our estimate has been growing at approximately 20% per year as enterprises increasingly embrace the benefits of software-as-a-service. Recent years have seen the company prudently adapt its offerings through organic product extensions and expand into adjacent verticals through acquisition while migrating toward an integrated CRM platform model. Salesforce’s mature, durable market position, track record of cash flow generation and well-aligned management team gives us confidence that it possesses identifiable franchise value—in contrast with many of its peers in the technology space, whose investors often are paying for unrealized earnings and early-stage business development strategies.”