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

2. Atlassian Corporation Plc (NASDAQ:TEAM)

Alyeska Investment’s Stake Value: $150 million

Percentage of Alyeska Investment’s 13F Portfolio: 1.72%

Number of Hedge Fund Holders: 66

Atlassian Corporation Plc (NASDAQ:TEAM) develops and sells a host of software products such as workflow, strategic product management, content collaboration, and centralized administration. The firm is headquartered in Sydney, Australia.

Atlassian Corporation Plc (NASDAQ:TEAM)’s latest fiscal quarter saw the firm grow its revenue by 40% and at the same time, the firm also posted a strong gross margin of 82% – as it benefited from being a software company with low costs of product development. Mizuho kept a $360 price target for the company in September 2022, stating that the firm will benefit from recent price increases.

Alyeska Investment owned 803,823 Atlassian Corporation Plc (NASDAQ:TEAM) shares as this year’s second quarter came to an end. This let it own a $150 million stake in the company. Insider Monkey’s 895 hedge fund survey for the same time period saw 66 investors in the firm.

Atlassian Corporation Plc (NASDAQ:TEAM)’s largest investor is Henry Ellenbogen’s Durable Capital Partners which owns 2.5 million shares that are worth $485 million.

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

“Atlassian Corporation Plc (NASDAQ:TEAM) is a leading provider of innovative, customizable team-collaboration software tools for over 200,000 customers. Despite positive fundamental momentum—the company recently reported 30% revenue growth and 28% trailing twelve months FCF margins—shares traded lower during Q2 as investors rotated out of high-growth stocks with elevated multiples. The company’s highly efficient sales and marketing capability, combined with substantial R&D investment, points to sustained long-term revenue and FCF growth. Meanwhile, we recognize a recession would likely have an impact on Atlassian via slowing growth metrics. However, we believe its low priced, mission critical cloud tools would prove relatively resilient in this scenario. For these reasons and shares trading at a very attractive valuation for a business with highly recurring revenues, strong revenue growth prospects and attractive margins, we added to our position.”