In this article, we discuss Kevin Oram’s Praesidium Investment’s top stock picks: ServiceNow, Wix, and More. If you want to skip our detailed analysis of Oram’s history, investment philosophy, and hedge fund performance, go directly to Kevin Oram’s Praesidium Investment’s Top 5 Stock Picks.
Kevin Oram is the managing partner and co-founder of Praesidium Investment Management Company, managing a portfolio worth more than $1.87 billion. The portfolio has grown by 0.97% this year under Oram’s investment strategies. Praesidium Investment is an investment management firm offering portfolio management, financial planning, and investment advisory services to trusts, institutions, and private clients in the United States.
Praesidium Investment Management Company has long-term ownership stakes in 12-15 publicly listed companies. The firm invests in stocks that are often undervalued and not sought after by most investors. They then work in collaboration with the companies’ management to optimize the value for all stakeholders.
Before stepping into his role as the co-founder and managing partner at Praesidium Investment, Kevin Oram worked at Sanford C. Bernstein from 1991 to 2003 in various positions including partner, senior vice president, and sector head of global technology equity investments. Apart from being an expert in technology investments, Oram has also managed hedge funds for the paper, gaming, hotels, restaurants, and food industries. In the second quarter of 2021, technology stocks account for about 55% of Oram’s portfolio, indicating the hedge fund’s immense interest in the tech sector.
Some of the notable technology stocks in Praesidium Investment Management’s 2021 Q2 portfolio include Wix.com Ltd (NYSE:WIX), ServiceNow Inc. (NYSE:NOW), and Workiva Inc. (NYSE:WK), among others discussed in detail below.
The dynamic financial landscape has the entire hedge fund industry on edge. Investors have suffered from losses when the hedged returns couldn’t keep up with the unhedged returns of the market indices. However, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Our Methodology
With this context in mind, here are some of the top stock picks of Kevin Oram’s Praesidium Investment Management Company. We used Praesidium Investment’s 13F portfolio for the second quarter of 2021 to rank these stocks. The list was compiled according to the value of each holding in the investment portfolio.
The analyst ratings for each company are also discussed to provide readers with some more context about their investment decisions. The hedge fund sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.
Kevin Oram’s Praesidium Investment’s Top Stock Picks: ServiceNow, Wix, and More
10. Wix.com Ltd (NYSE:WIX)
Oram’s Stake Value: $78,185,000
Percentage of Oram’s 13F Portfolio: 4.17%
Number of Hedge Fund Holders: 35
The tenth stock on our list of Kevin Oram’s Praesidium Investment’s top stock picks is Wix.com Ltd (NYSE:WIX), which is a company offering a cloud-based platform that facilitates the creation of websites and web applications. Founded in 2006 in Tel Aviv, Israel, Wix.com Ltd (NYSE:WIX) has over 200 million users worldwide, who utilize the platform to enhance their online presence.
Oram’s Praesidium Investment owns 269,343 shares in Wix.com Ltd (NYSE:WIX), amounting to $78.18 million, and making up 4.17% of Oram’s 13F portfolio. At the end of the second quarter of 2021, 35 hedge funds in Insider Monkey’s database held stakes amounting to $1.38 billion in Wix.com Ltd (NYSE:WIX), down from 40 in the previous quarter with stakes worth over $1.46 billion. The company reported last quarter’s earnings per share of -$0.28 on August 11, beating analysts’ consensus estimates of -$0.41 by $0.13.
In their Q4 2020 investor letter, Baron Funds mentioned Wix.com Ltd (NYSE:WIX). Here is what they said:
“Weakness in IT was largely due to share price declines from web software firm Wix.com Ltd. After doubling during the first three quarters of 2020, Wix’s shares fell slightly on concerns that its business, which benefited from increased website creation during the pandemic, could eventually moderate.”
9. Tyler Technologies Inc. (NYSE:TYL)
Oram’s Stake Value: $105,309,000
Percentage of Oram’s 13F Portfolio: 5.61%
Number of Hedge Fund Holders: 33
The ninth stock on our list of Kevin Oram’s Praesidium Investment’s top stock picks is Tyler Technologies Inc. (NYSE:TYL), which is one of largest software providers to the United States public sector. The Texas based software company was founded in 1966 and serves across 26 locations in the USA and Canada.
Oram’s Praesidium Investment owns 232,974 shares in Tyler Technologies Inc. (NYSE:TYL), amounting to $105.3 million, and making up 5.61% of Oram’s 13F portfolio. At the end of the second quarter of 2021, 33 hedge funds in Insider Monkey’s database held stakes amounting to $731 million in Tyler Technologies Inc. (NYSE:TYL), up from 28 in the previous quarter with stakes worth over $522.8 million. The company reported last quarter’s earnings per share of $1.83 on July 28, beating analysts’ consensus estimates of $1.61 by $0.22.
Like Wix.com Ltd (NYSE:WIX), ServiceNow Inc. (NYSE:NOW), and Workiva Inc. (NYSE:WK), Tyler Technologies Inc. (NYSE:TYL) is one of the most notable stocks in Praesidium Investment’s Q2 portfolio.
Polen Capital mentioned Tyler Technologies Inc. (NYSE:TYL) in their Q1 2021 investor letter. Here is what they said:
“We added to Tyler Technologies, given our excitement about their announced acquisition of NIC Inc. NIC is a provider of digital solutions to public entities. The company offers a large payment processing business and compliments Tyler’s existing business via servicing state and local governments. NIC is a company our team has tracked for many years. We believe that the combination of the two companies will be transformational for Tyler. Additionally, we think the acquisition will unlock many opportunities under Tyler’s leadership that would have been harder to access when NIC was independent.”
8. Primo Water Corporation (NYSE:PRMW)
Oram’s Stake Value: $118,917,000
Percentage of Oram’s 13F Portfolio: 6.34%
Number of Hedge Fund Holders: 24
Primo Water Corporation (NYSE:PRMW) is the eighth stock on our list of Kevin Oram’s Praesidium Investment’s top stock picks. Primo Water Corporation (NYSE:PRMW) provides bottled water, water dispensers, and water filtration appliances. Founded in 1952, the company is headquartered in Florida, with residential and commercial clients throughout the USA, Canada, Europe, and Israel.
Oram’s Praesidium Investment owns about 7.1 million shares in Primo Water Corporation (NYSE:PRMW), amounting to $118.92 million, and making up 6.34% of Oram’s 13F portfolio. At the end of the second quarter of 2021, 24 hedge funds in Insider Monkey’s database held stakes amounting to $687.3 million in Primo Water Corporation (NYSE:PRMW), up from 32 in the previous quarter with stakes worth over $654.3 million. The company reported last quarter’s earnings per share of $0.17 on August 5, beating analysts’ consensus estimates of $0.11 by $0.06.
Like Wix.com Ltd (NYSE:WIX), ServiceNow Inc. (NYSE:NOW), and Workiva Inc. (NYSE:WK), Primo Water Corporation (NYSE:PRMW) is one of the most notable stocks in Praesidium Investment’s Q2 portfolio.
7. Workiva Inc. (NYSE:WK)
Oram’s Stake Value: $122,930,000
Percentage of Oram’s 13F Portfolio: 6.55%
Number of Hedge Fund Holders: 21
The seventh stock on our list of Kevin Oram’s Praesidium Investment’s top stock picks is Workiva Inc. (NYSE:WK), which is an SaaS company headquartered in Iowa, US, providing its cloud computing services to clients worldwide.
Oram’s Praesidium Investment owns about 1.1 million shares in Workiva Inc. (NYSE:WK), amounting to $122.93 million, and making up 6.55% of Oram’s 13F portfolio. At the end of the second quarter of 2021, 21 hedge funds in Insider Monkey’s database held stakes amounting to $505.5 million in Workiva Inc. (NYSE:WK), up from 28 in the previous quarter with stakes worth over $438.7 million.
In their Q2 2021 investor letter, Artisan Partners mentioned Workiva Inc. (NYSE:WK). Here is what they said:
“Workiva is a global provider of cloud-based financial reporting and compliance solutions. Compiling data from disparate and unconnected systems across various departments within an organization for reporting and compliance purposes is an incredibly manual process. An evolving regulatory landscape over the past decade has not only made this increasingly burdensome, but has also required further management oversight. Workiva’s solutions aggregate this data and enable companies to have more efficiency in and greater visibility into regulatory reporting processes. In addition to this strong value proposition, we believe organizations are also on the cusp of shifting their software spend from front-office to back office departments, particularly in the CFO office where the shift to remote work during the pandemic highlighted the need to bring these workflows up to date. We also believe the company’s expanded product capabilities—which now go beyond its core SEC reporting capabilities—will lead to more use cases for new and existing customers, providing Workiva with a plethora of new growth opportunities in the periods ahead.”
6. Copart Inc. (NASDAQ:CPRT)
Oram’s Stake Value: $130,811,000
Percentage of Oram’s 13F Portfolio: 6.97%
Number of Hedge Fund Holders: 44
The sixth stock on our list of Kevin Oram’s Praesidium Investment’s top stock picks is Copart Inc. (NASDAQ:CPRT), which is a provider of online automobile auction and re-marketing services in 11 countries including the USA, Canada, the UK, and Germany among others. Headquartered in Dallas, Texas, Copart Inc. (NASDAQ:CPRT) has warehouses in more than 200 locations worldwide to store vehicle inventory.
Oram’s Praesidium Investment owns 992,272 shares in Copart Inc. (NASDAQ:CPRT), amounting to $130.8 million, and making up 6.97% of Oram’s 13F portfolio. At the end of the second quarter of 2021, 44 hedge funds in Insider Monkey’s database held stakes amounting to $992.3 million in Copart Inc. (CPRT), up from 49 in the previous quarter with stakes worth over $966.7 million.
Like Wix.com Ltd (NYSE:WIX), ServiceNow Inc. (NYSE:NOW), and Workiva Inc. (NYSE:WK), Copart Inc. (NASDAQ:CPRT) is one of the most notable stocks in Praesidium Investment’s Q2 portfolio.
Merion Road Capital Management mentioned Copart Inc. (NASDAQ:CPRT) in their Q2 2021 investor letter. Here is what they said:
“Many of our companies reported very strong earnings back in April. The market shrugged these off as it pondered how much growth would be sustainable, are inflationary trends transitory, and when interest rates will rise. While a slow-down in the broader economic recovery would hurt our portfolio, I remain positive on our position’s market positioning and longer term trends.
For instance, Copart reported 33% YoY revenue growth with EBIT margins expanding to 45%, an all-time high. While the company benefited from inflation (an interesting hedge the market largely ignored earlier in the year), sustainable increases in ASPs and service offerings bode well for revenue per vehicle growth. Management noted that traffic is still down 20% or more as non-US markets are several months behind the United States on reopening and vaccinations. This volume boost should provide good tailwinds in the coming months.”
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Disclosure: None. Kevin Oram’s Praesidium Investment’s Top Stock Picks: ServiceNow, Wix, and More is originally published on Insider Monkey.
