We recently published a list of Top 10 Stocks to Buy According to XN Exponent Advisors LLC. In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other top stocks to buy according to XN Exponent Advisors LLC.
Established in 2018 by Gaurav Kapadia, XN Exponent Advisors LLC is based in New York and manages approximately $2.53 billion in 13F securities according to its latest filing for the fourth quarter of 2024. With just 13 clients, the hedge fund maintains a concentrated portfolio, with its top ten holdings accounting for 69.02% of its total assets. XN employs a global investment strategy that spans both public and private markets, focusing on generating high risk-adjusted returns. The firm targets sectors where it has deep expertise while deliberately avoiding balance sheet-heavy industries such as financials, healthcare, energy, and materials.
The firm primarily invests in North America and Western Europe but remains open to opportunities in other regions that align with its strategic goals. XN’s investment approach is built around a long/short strategy, where it seeks to capitalize on market inefficiencies by purchasing undervalued assets and shorting overvalued ones. This method hinges on the firm’s ability to assess market opportunities accurately, though there is no guarantee of success. Market disruptions pose a significant risk, as they can result in substantial losses and may force XN to close out client positions to mitigate damage.
A key feature of XN’s approach is its flexibility. Unlike traditional investment firms bound by rigid diversification or leverage policies, XN can trade across a wide range of securities, issuers, countries, and sectors to align with its investment objectives. This adaptability enables the firm to respond quickly to shifting market conditions, reallocating client assets as necessary. While this strategy offers significant potential for high returns, it also carries inherent risks, particularly in volatile market environments. However, XN’s focus on specialized knowledge and strategic positioning aims to maximize opportunities while managing downside exposure.
Founder and Chief Executive Officer of XN, Gaurav Kapadia has nearly two decades of experience in public and private markets and has built a reputation as a visionary investor and business leader. Before launching XN, a firm whose name reflects the power of long-term compounding, Kapadia was the Co-Founder and Co-Managing Partner of Soroban Capital Partners, a globally recognized investment firm. Prior to that, he served as a Partner at TPG-Axon Capital, working in both New York and London. His extensive expertise in finance and investing is rooted in his academic background; he earned a Bachelor of Science in Economics from the Wharton School at the University of Pennsylvania in 1999.
Beyond his financial career, Kapadia is deeply committed to philanthropy and civic engagement, particularly in the arts, humanities, education, and social equity. In September 2023, the Mellon Foundation announced his election to its Board of Trustees, recognizing his dedication to supporting cultural and educational initiatives. He has been a strong proponent of the transformative power of art and the humanities, emphasizing their role in fostering positive societal change. Under the leadership of Mellon Foundation President Elizabeth Alexander, Kapadia expressed his excitement to contribute to the organization’s mission, citing its precision and ambitious vision as key reasons for his involvement.
Kapadia also serves on the Boards of Trustees for several influential institutions, including The Whitney Museum of American Art, The Trust for Governors Island, Uncommon Schools, and The Institute for Constitutional Advocacy and Protection at Georgetown University Law Center. His advocacy for education, civic engagement, and equality underscores his commitment to creating meaningful opportunities for underserved communities. Through his leadership in both finance and philanthropy, Kapadia continues to bridge the worlds of business and social impact, demonstrating how strategic investments—whether in financial markets or cultural institutions—can drive long-term positive change.
Our Methodology
The stocks discussed below were picked from XN Exponent Advisors LLC’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer service team in an office setting using the company’s Customer 360 platform to communicate with customers.
Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders as of Q4: 162
XN Exponent Advisors LLC’s Equity Stake: $149.91 Million
Salesforce, Inc. (NYSE:CRM), a leading cloud-based software company, has faced challenges in 2025 despite its long history of strong performance. The company recently introduced Agentforce 2dx, an advanced AI-driven solution designed to streamline customer and employee workflows by enabling proactive AI agents to operate behind the scenes. This innovation is expected to enhance efficiency and scalability for organizations.
Investor interest in Salesforce remains high, with hedge fund participation increasing from 116 firms in Q3 2024 to 162 in Q4, signaling confidence in the company’s future. Despite missing revenue expectations in its most recent earnings report, Salesforce, Inc. (NYSE:CRM) still demonstrated financial resilience. The company reported earnings per share of $2.78, surpassing estimates of $2.61, while revenue reached $9.99 billion, just shy of the projected $10.04 billion. Year-over-year, revenue grew 7.6%, and net income rose to $1.71 billion from $1.45 billion, reflecting continued financial strength despite market skepticism.
A major highlight of the quarter was the expansion of Salesforce’s AI offerings, with Agentforce seamlessly integrating with Slack to assist employees. Since October, the AI tool has been involved in 380,000 customer service interactions, requiring human intervention in only 2% of cases. CEO Marc Benioff emphasized Salesforce’s ability to scale AI capabilities, distinguishing it from competitors and reinforcing its position as a key player in enterprise AI adoption.
Looking ahead, Salesforce, Inc. (NYSE:CRM) expects adjusted earnings per share of $11.09 to $11.17 for fiscal 2026, with revenue projected between $40.5 billion and $40.9 billion, reflecting 7.4% growth. These figures, however, remain below analyst estimates of $11.18 in earnings per share and $41.35 billion in revenue, raising concerns about the company’s ability to sustain its growth momentum. While Salesforce, Inc. (NYSE:CRM) continues to invest in AI and cloud services, having strong institutional backing and a commitment to innovation, the company remains well-positioned for long-term success in the evolving technology landscape.
Parnassus Growth Equity Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“Salesforce, Inc. (NYSE:CRM) reported third-quarter results that exceeded analysts’ expectations, as the integration of AI technology across the customer relationship management software company’s product offerings has driven robust growth in new deals.”
Overall, CRM ranks 7th on our list of top stocks to buy according to XN Exponent Advisors LLC. While we acknowledge the potential for CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
