Hedge Funds Agree With Goldman Sachs’ Praise For These 3 Tech Stocks

2. Cognizant Technology Solutions Corp (NASDAQ:CTSH)

Investors with Long Positions (as of June 30): 49

Aggregate Value of Investors’ Holdings (as of June 30): $842.82 Million

Cognizant Technology Solutions Corp (NASDAQ:CTSH) is another “high dispersion rate” stock, with an upside potential of 24%. Eight more hedge funds owned the stock at the end of the latest quarter compared to the prior one, whereas the value of the money invested in the stock shrank by $32.25 million over this period. The provider of information technology (IT), consulting, and business process services has delivered a stellar stock performance over the last few years, mainly assisted by the company’s aggressive growth strategy. Cognizant has pursued 16 acquisitions since 2010, all of which were primarily focused on geographic expansion and enriching its industry knowledge. This year has not been bad either, as its shares have gained over 18% since the beginning of the year. It is also worth noting that Cognizant has teamed up with Verizon Communications Inc. (NYSE:VZ) to enhance the delivery of leading-edge, technology-based solutions to enterprises, which will most likely lead to an increase to the company’s top-line in the upcoming quarters. Ken Griffin’s Citadel Investment Group is the top shareholder of Cognizant Technology Solutions Corp (NASDAQ:CTSH) among the hedge funds tracked by Insider Monkey, with 2.45 million shares.

1. salesforce.com inc. (NYSE:CRM)

Investors with Long Positions (as of June 30): 68

Aggregate Value of Investors’ Holdings (as of June 30): $1.85 Billion

salesforce.com inc. (NYSE:CRM) received a strong vote of confidence from the hedge funds tracked by us, as the number of money managers invested in the stock climbed by 22 during the second quarter. By the same token, the value of their holdings in salesforce.com more than doubled during this period, increasing by $948.80 million, partially thanks to the company’s stock performance during that quarter. salesforce.com inc. (NYSE:CRM)’s share price performance looks more cheerful on a broader picture, as its shares have gained more than 21% year-to-date. Just a few days ago, the provider of enterprise cloud computing solutions announced the extension of its strategic partnership with Microsoft Corporation (NASDAQ:MSFT) to connect its Salesforce Customer Success Platform to Microsoft Office productivity apps and services. The two companies also teamed up back in 2014 with two new integrations: Salesforce App for Outlook, and Salesforce1 Mobile App for Microsoft Office. Considering the positive hedge fund sentiment on the stock and its strong stock performance, it is no surprise that salesforce.com made Goldman Sachs’ list of potential “outperformers” in the challenging macro environment. James Dondero’s Highland Capital Management added a 1.88 million-share position in salesforce.com to its portfolio during the recent quarter.

Disclosure: None