Montaka Global Investments, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. All of the companies in Motaka’s portfolio have significant and growing competitive advantages, which aligns with the firm’s investment strategy. All of them are situated within advantageous tailwinds and structural changes. Furthermore, they continue to be substantially undervalued despite recent great stock price performance. Montaka’s investee companies account for 75% of Montaka’s total portfolio and yearly portfolio turnover is roughly 25% (representing ~4 year holding period, on average). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Montaka Global Investments highlighted stocks like Salesforce, Inc. (NYSE:CRM), in the fourth quarter 2024 investor letter. Salesforce, Inc. (NYSE:CRM) offers Customer Relationship Management (CRM) technology that brings companies and customers together. The one-month return of Salesforce, Inc. (NYSE:CRM) was -2.66%, and its shares gained 19.21% of their value over the last 52 weeks. On January 22, 2024, Salesforce, Inc. (NYSE:CRM) stock closed at $332.62 per share with a market capitalization of $318.317 billion.
Montaka Global Investments stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.
While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.
Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.
Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.
But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)
A team of software developers gathered around a monitor discussing a new CRM platform.
Salesforce, Inc. (NYSE:CRM) is in 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 116 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the third quarter which was 117 in the previous quarter. While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Salesforce, Inc. (NYSE:CRM) and shared the list of buzzing AI stocks on latest news and ratings. Salesforce, Inc. (NYSE:CRM) contributed to the performance of Vulcan Value Partners during Q4 2024 due to its strong earnings and excellent AI strategy data. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.