In this article, we discuss Alok Agrawal’s Bloom Tree Partners portfolio: 5 technology stock picks. If you want to read our detailed analysis of Agrawal’s history and hedge fund performance, go directly to Alok Agrawal’s Bloom Tree Partners Portfolio: 10 Technology Stock Picks.
5. Alphabet Inc. (NASDAQ:GOOGL)
Bloom Tree Partners’ Stake Value: $34.58 million
Percentage of Bloom Tree Partners’ 13F Portfolio: 4.12%
Number of Hedge Fund Holders: 195
On December 3, Tigress Financial analyst Ivan Feinseth reiterated a Strong Buy rating on Alphabet Inc. (NASDAQ:GOOGL) stock and raised the price target from $3,185 to $3,540, noting the company’s intense focus on investing in AI which has led to quality functioning of the products and noteworthy growth opportunities.
According to the database of Insider Monkey that tracks 867 hedge funds, 195 funds held shares in Alphabet Inc. (NASDAQ:GOOGL) worth $28.55 billion in the third quarter, up from 190 funds holding shares in the company worth $26.83 billion in the preceding quarter. However, Bloom Tree Partners decreased its activity in the corporation by 17% in the same quarter.
Saturna Capital mentioned Alphabet Inc. (NASDAQ:GOOGL) in its third-quarter 2021 investor letter. Here is what the letter said:
“Alphabet was a new addition to the Fund this year, as we believed it important to have exposure to the top online media and advertising company in the world. Some have raised concerns surrounding Alphabet’s exposure to political interference, but we take comfort from the belief that were the company to be broken up, it would quite likely be worth even more than as a single entity.”
4. Microsoft Corporation (NASDAQ:MSFT)
Bloom Tree Partners’ Stake Value: $34.6 million
Percentage of Bloom Tree Partners’ 13F Portfolio: 4.12%
Number of Hedge Fund Holders: 250
On December 21, Microsoft Corporation (NASDAQ:MSFT) received the European Commission’s unconditional approval for its acquisition bid of $16 billion of Nuance Communications, Inc. (NASDAQ:NUAN).
As per the database of Insider Monkey, Ken Fisher’s Fisher Asset Management was the leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 25.52 million shares worth $7.19 billion, representing 4.46% of the portfolio.
Baron Funds mentioned Microsoft Corporation (NASDAQ:MSFT) in its third-quarter 2021 investor letter. Here is what it said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue beating Street estimates by 4.5%, an acceleration in Commercial Cloud revenue to 31% constant-currency growth, a four-point improvement in Commercial Cloud gross margins (to 70% from 66%), and GAAP earnings up 42%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by TAM expansion across its disruptive cloud product portfolio, as more companies look to transform and digitize their businesses, as well as strong operating leverage as its cloud products gain scale.”
3. Fiserv, Inc. (NASDAQ:FISV)
Bloom Tree Partners’ Stake Value: $35.04 million
Percentage of Bloom Tree Partners’ 13F Portfolio: 4.17%
Number of Hedge Fund Holders: 65
Fiserv, Inc. (NASDAQ:FISV) is a Fortune 500 company located in Wisconsin that provides fintech and financial services. The firm’s clients include the government, banks, healthcare sector, credit unions, corporations, merchants, and other financial organizations.
As per the third quarter filings, Bloom Tree Partners owned 322,972 shares in Fiserv, Inc. (NASDAQ:FISV) worth $35.04 million, making up 4.17% of the portfolio. The fund increased its activity in the company by 24% in the third quarter of 2021.
Madison Funds mentioned Fiserv, Inc. (NASDAQ:FISV) in its first-quarter 2021 investor letter. Here is what it said:
“This quarter we researched several new stock ideas, but because of high prices, acted on only one. Thus, a new portfolio name is Fiserv, with corporate headquarters in Brookfield, WI, just down I-94 from us. Fiserv is a technology company serving financial institutions (“FIs”) and retail merchants. It has two main business lines. In the first, it’s a market leader in outsourced IT solutions for banks and credit unions, online and mobile banking technology, digital money movement solutions, and card issuing services. Fiserv’s second core business is merchant acquiring and processing, where it’s a leader in providing a variety of solutions to help all types of merchants accept digital payments. They entered this business through the acquisition of First Data in 2019.
Within the first business, Fiserv’s software is critical to the daily operations of FI clients. Their solutions not only provide the vital central processing systems, but also enable services such as electronic bill pay and digital money transfers at both large institutions and local banks and credit unions alike. As such, it is an incredibly sticky business that is resilient through economic cycles. On the merchant acquiring side of Fiserv, they process trillions of dollars annually for millions of merchant clients. Their solutions cater to all types of merchants and optimize for seamless acceptance and high authorization rates while also limiting fraud. Similar to the IT outsourcing business, Fiserv’s merchant solutions are critical to their customers’ daily operations. Furthermore, we are especially encouraged by their investments in new solutions, particularly Clover and Carat. Clover is a small and midsize business merchant acquiring platform and Carat is an e-commerce acquiring platform. Both these products hit the bullseye in terms of the way people are interacting with the retail industry, and both are growing at above market rates, which we believe will sustain into the future…” (Click here to see the full text)
2. VNET Group, Inc. (NASDAQ:VNET)
Bloom Tree Partners’ Stake Value: $48.47 million
Percentage of Bloom Tree Partners’ 13F Portfolio: 5.77%
Number of Hedge Fund Holders: 16
VNET Group, Inc. (NASDAQ:VNET) is a China-based carrier-neutral internet data service provider. The company was previously known as 21Vianet Group, Inc. and its clientele includes corporations, government bodies, and different levels of enterprises. The company has its operations in around 20 cities in the People’s Republic of China and has a customer base of nearly 5,000 people.
According to the database of Insider Monkey that tracks 867 hedge funds, 16 funds had stakes in VNET Group, Inc. (NASDAQ:VNET) worth $173.32 million in the third quarter, down from 23 funds having stakes worth $264.55 million in the previous quarter.
On November 22, HSBC analyst Helen Fang upgraded VNET Group, Inc. (NASDAQ:VNET) stock from Hold to Buy rating with a price target of $17.40.
1. Elastic N.V. (NYSE:ESTC)
Bloom Tree Partners’ Stake Value: $61.55 million
Percentage of Bloom Tree Partners’ 13F Portfolio: 7.33%
Number of Hedge Fund Holders: 59
Elastic N.V. (NYSE:ESTC) is a California-based American-Dutch search company. It offers products and services for data management, search, and analytics purposes. The company’s most famous product is Elastic Search and is used by both individual developers and organizations.
Elastic N.V. (NYSE:ESTC) was mentioned by Greenhaven Road Capital in its third-quarter 2021 investor letter. Here is what it said:
“Elastic Software (ESTC) – Share prices are up more than threefold since our first purchases of Elastic Software. The company continues to report best-in-class net revenue retention (amount generated from existing customers) of 130%. With recent acquisitions, they are continuing their expansion into security. This is the company with the highest product velocity and largest addressable markets in our portfolio. With a massive base of customers using freemium/opensource products, there are fertile hunting grounds for growth.”
You can also take a peek at 10 Healthcare Stocks to Buy According to Tiger Cub Chase Coleman and 10 Tech Stocks to Buy According to Billionaire Philippe Laffont.
