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Is salesforce.com, inc. (CRM) A Good Stock To Buy?

Because salesforce.com, inc. (NYSE:CRM) has witnessed declining sentiment from the aggregate hedge fund industry, logic holds that there exists a select few funds that slashed their positions entirely by the end of the third quarter. Intriguingly, Bain Capital’s Brookside Capital dropped the biggest investment of all the hedgies followed by Insider Monkey, totaling close to $71.1 million in stock. Philippe Laffont’s fund, Coatue Management, also cut its holding, about $38.8 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 12 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as salesforce.com, inc. (NYSE:CRM) but similarly valued. We will take a look at PNC Financial Services (NYSE:PNC), Canadian National Railway (USA) (NYSE:CNI), General Dynamics Corporation (NYSE:GD), and NextEra Energy, Inc. (NYSE:NEE). All of these stocks’ market caps resemble CRM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PNC 33 1304487 -3
CNI 17 1296655 -4
GD 43 6049744 3
NEE 43 1811341 5

As you can see these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $2.62 billion, compared to $1.65 billion in CRM’s case. General Dynamics Corporation (NYSE:GD) is the most popular stock in this table. On the other hand Canadian National Railway (USA) (NYSE:CNI) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks salesforce.com, inc. (NYSE:CRM) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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