2. HubSpot, Inc. (NYSE:HUBS)
SCGE Management: $951,935,000
Percentage of SCGE Management’s 13F Portfolio: 8.83%
Number of Hedge Fund Holders: 48
HubSpot, Inc. (NYSE:HUBS) is a software company based in the United States, specializing in inbound marketing, sales, and customer care. In December, HubSpot, Inc. (NYSE:HUBS) was given a “Buy” rating and a $953 price objective by Goldman Sachs analyst Gabriela Borges.
SCGE Management began building its position in HubSpot, Inc. (NYSE:HUBS) in the first quarter of 2018, and holds 1.41 million shares in the company as of Q3 2021, valued at $951.94 million. The HubSpot, Inc. (NYSE:HUBS) stock represents 8.83% of the hedge fund’s 13F portfolio for the third quarter.
At the end of the third quarter of 2021, 48 hedge funds in the database of Insider Monkey held stakes totaling $2.86 billion in HubSpot, Inc. (NYSE:HUBS), down from 54 funds in the preceding quarter , holding stakes worth $2.67 billion in HubSpot, Inc. (NYSE:HUBS).
In its third-quarter 2021 investor letter, Artisan Partners mentioned HubSpot, Inc. (NYSE:HUBS). Here is what the fund said:
“As we set our priorities for 2022, diversity is an area of focus. We think a reasonable place for us to start is at the boardroom level. Studies have shown board diversity can meaningfully impact how companies make decisions, deploy capital and ensure management’s actions align with the interests of all stakeholders. Additional benefits include increased creativity and innovation, a reduced potential for groupthink and entrenchment and more openness to a wider variety of value creation strategies such as R&D and/or risk management. Research has also shown diversity correlates with better financial performance.
Today’s corporate boardrooms and leadership teams do not always align with the gender and ethnic makeup of the broader workforce, which has evolved significantly over the past several decades, and we believe this is an opportunity for US domiciled companies. Today’s US civilian labor force consists of approximately 50% women (vs. 29% in 1950) and 20% ethnic minorities (vs. 12% in 1980). Meanwhile, according to 2021 data provided by an ISS ESG review of 45,643 director roles, 21% of board members were female and 14% were non-white. While progress has been made in recent decades, it has been slow, and we believe it is important for companies to remain focused on closing this gap.
Two holdings we believe are particularly forward leaning in this area and have already or are starting to disclose gender and ethnicity metrics (which includes) HubSpot. Both companies’ boards are at least 40% female, and their public disclosures include varying degrees of gender, ethnicity and age metrics across different levels of the organization and how they have trended historically. We believe this level of transparency is important. It not only provides relevant stakeholders with a baseline to measure against over time, but it also provides more transparency into who the company is hiring, who is present and who is getting promoted.”
