Should You Consider Investing in Docusign (DOCU)?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Longleaf Partners Fund added 6.18% in the fourth quarter, taking returns for the full year to 23.58%, well ahead of its absolute return goal. However, the S&P 500 rallied 11.03% in the fourth quarter, taking the index’s full-year returns to 28.71%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Longleaf Partners Fund, in its Q4 2021 investor letter, mentioned DocuSign, Inc. (NASDAQ: DOCU) and discussed its stance on the firm. DocuSign, Inc. is a San Francisco, California-based electronic signature technology company with a $22.7 billion market capitalization. DOCU delivered a -24.45% return since the beginning of the year, while its 12-month returns are up by -49.23%. The stock closed at $115.07 per share on February 25, 2022.

Here is what Longleaf Partners Fund has to say about DocuSign, Inc. in its Q4 2021 investor letter:

“When we step back and look at the stocks that we do not own, we feel better than ever because finally too much ardor for these market favorites is making many of them fall harder. This began happening this year in the small cap world, as first the SPAC market cooled off, then the IPO (initial public offering) market began cooling as well. We have now seen things changing for larger cap favorites like Docusign falling over 40% in a day after a quarter that wasn’t all that bad, because it must be truly GREAT when you are trading near 20x revenues. This has led to a narrowing of market leadership yet again, with five large tech stocks essentially drove the S&P 500.”

Photo by DocuSign on Unsplash

Our calculations show that DocuSign, Inc. (NASDAQ: DOCU) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. DOCU was in 49 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 51 funds in the previous quarter. DocuSign, Inc. (NASDAQ: DOCU) delivered a -53.90% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on DOCU in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.