RV Capital, an investment management firm, published its “Business Owner Fund” second quarter 2022 investor letter – a copy of which can be seen here. The NAV of the Business Owner Fund was €600.80 as of 30 June 2022. The NAV decreased 40.2% since the start of the year and increased 505.5% since inception on 30 September 2008. The compound annual growth rate since inception is 14.0%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, RV Capital mentioned Salesforce, Inc. (NYSE:CRM) and explained its insights for the company. Founded in 1999, Salesforce, Inc. (NYSE:CRM) is a San Francisco, California-based cloud-based software company with a $150.2 billion market capitalization. Salesforce, Inc. (NYSE:CRM) delivered a -40.86% return since the beginning of the year, while its 12-month returns are down by -44.84%. The stock closed at $150.29 per share on October 07, 2022.
Here is what RV Capital has to say about Salesforce, Inc. (NYSE:CRM) in its Q2 2022 investor letter:
“Salesforce is a recent investment which I wrote about in my H1 2021 letter. As of today, the investment, if not the share price, has worked out as hoped. Given the utility-like nature of its business, it is the kind of investment I thought would do well in a market panic, but alas it was not to be.
The investment thesis rested on three legs: an enormous moat based on the ubiquity of its software in most of the world’s largest companies, robust growth driven by the growing need for digitisation as well as the huge potential of Slack, and steady progress towards a mature operating margin of 40%.
The company has performed well against all three measures. I do not see any obvious threat to its moat. Judged by the growing number of “multi-cloud” deals it has announced, it seems to be deepening its relationships with its customers rather than vice versa. Growth has tracked higher than the 18% p.a. I assumed at the time of our investment. Moreover, I continue to be optimistic about Slack. Revenue growth has accelerated since its acquisition by Salesforce, and it is yet to see the full benefit of becoming the main way that customers access Salesforce’s suite of applications. Finally, the company has made steady, if not spectacular, progress in improving its margins…” (Click here to see the full text)
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Our calculations show that Salesforce, Inc. (NYSE:CRM) ranks 10th on our list of the 30 Most Popular Stocks Among Hedge Funds. Salesforce, Inc. (NYSE:CRM) was in 116 hedge fund portfolios at the end of the second quarter of 2022, compared to 114 funds in the previous quarter. Salesforce, Inc. (NYSE:CRM) delivered a -14.36% return in the past 3 months.
In May 2022, we also shared another hedge fund’s views on Salesforce, Inc. (NYSE:CRM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
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Disclosure: None. This article is originally published at Insider Monkey.
