Top 5 Stocks to Buy According to John Orrico’s Water Island Capital

4. Five9, Inc. (NASDAQ:FIVN)

Water Island Capital Stake Value: $109,709,000
Percentage of Water Island Capital’s 13F Portfolio: 6.31%
Number of Hedge Fund Holders: 76

Five9, Inc. (NASDAQ:FIVN) is a company that sells cloud contact center software. On February 1, William Blair analyst Matt Stotler initiated coverage of Five9, Inc. (NASDAQ:FIVN), rating the stock as “Outperform”. According to the analyst, Five9 has a remarkable capability to support and grow client connections.

John Orrico’s Water Island Capital initiated a new stake in Five9, Inc. (NASDAQ:FIVN) in the third quarter of 2021, buying 686,798 shares of the company worth $109.71 million. Panayotis Takis Sparaggis’ Alkeon Capital Management is the biggest stakeholder of Five9, Inc. (NASDAQ:FIVN) among the funds tracked by Insider Monkey, with 3.01 million shares worth $480.68 million.

Hedge funds are loading up on Five9, Inc. (NASDAQ:FIVN), as Insider Monkey’s data shows that 76 hedge funds held a stake in the company as of the end of the third quarter of 2021, up from 45 funds in the preceding quarter.

ClearBridge Investments, an investment management firm, had this to say about Five9 in its first-quarter 2021 investor letter:

“Five9 is a cloud-based contact center as a service software provider that is replacing aging on-premise legacy solutions that dominate the installed base. Companies are being forced to modernize and cloud penetration is still low; Five9 is positioned to benefit and should see further growth driven by its cross-selling add-on modules and an AI product that generates high revenue.”