Alok Agrawal’s Bloom Tree Partners Portfolio: 10 Technology Stock Picks
In this article, we are going to discuss Alok Agrawal’s Bloom Tree Partners portfolio: technology stock picks. If you want to skip our detailed analysis of Agrawal’s history, investment philosophy, and hedge fund performance, you can go directly to Alok Agrawal’s Bloom Tree Partners Portfolio: 5 Technology Stock Picks.
Alok Agrawal is the founder and Managing Director at Bloom Tree Partners. Prior to that, he was an Investment Professional at Tiger Management.
Alok Agrawal completed his B.Tech in Computer Science from the Indian Institute of Technology from Kanpur, India, and MS in Computer Science from the University of California, Berkeley. He received his MBA from Harvard Business School in 2002.
Alok Agrawal founded Bloom Tree Partners in 2008 with seed money from his mentor at Tiger Management. The fund is an investment advisory to high-net-worth individuals and institutional clients and focuses on generating consistent returns from long and short-term investment opportunities.
As of the third quarter of 2021, Bloom Tree Partners has 174 holdings worth $839.16 million with discretionary assets under management of $1.78 billion. According to the third quarter filings, the fund made new purchases in 14 stocks and increased holdings in 29. Furthermore, it sold out of 18 stocks and reduced holdings in 131.
Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:FB) are the most significant names in the portfolio of Bloom Tree Partners.
Our Methodology
The stocks mentioned in the article have been picked from the Q3 portfolio of Bloom Tree.
The hedge fund sentiment of each stock has been taken from Insider Monkey’s database of 867 hedge funds.
Alok Agrawal’s Bloom Tree Partners Portfolio: Technology Stock Picks
10. salesforce.com, inc. (NYSE:CRM)
Bloom Tree Partners’ Stake Value: $26.85 million
Percentage of Bloom Tree Partners’ 13F Portfolio: 3.2%
Number of Hedge Fund Holders: 119
salesforce.com, inc. (NYSE:CRM) is based in San Francisco and is a cloud-based enterprise software provider. The services of the company are focused on Customer Relationship Management (CRM) and the other solutions offered by the company include analytics, customer support, consultation, and application development.
On December 22, Evercore ISI analyst Kirk Materne maintained an Outperform rating on salesforce.com, inc. (NYSE:CRM) stock with a price target of $375. He mentioned salesforce.com, inc. (NYSE:CRM) as his top pick for 2022 and termed it as one of the best growth stories in the software industry.
salesforce.com, inc. (NYSE:CRM) was mentioned in Vulcan Value Partners’ third-quarter 2021 investor letter. Here is what the letter said:
“Salesforce.com Inc., a material contributor for the quarter, is the dominant provider of customer relationship management (CRM) software and technology. Salesforce has high retention rates, pricing power, a large and growing addressable market, high free cash flow, and a competitive moat. The company continues to execute well, and we believe the global pandemic has only improved its prospects and future returns.”
9. Amazon.com, Inc. (NASDAQ:AMZN)
Bloom Tree Partners’ Stake Value: $27.04 million
Percentage of Bloom Tree Partners’ 13F Portfolio: 3.22%
Number of Hedge Fund Holders: 242
On December 27, Monness Crespi analyst Brian White in a note highlighted the upcoming availability of 84 zones of AWS spread over 26 regions with around 200 fully-featured services available to millions of customers as per the keynote by AWS CEO Adam Selipsky.
According to the third quarter filings, Bloom Tree Partners owned 8,233 shares in Amazon.com, Inc. (NASDAQ:AMZN) worth $27.04 million, representing 3.22% of the portfolio. The fund decreased its activity in the company by 24% in the same quarter.
Davis Funds mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its third-quarter 2021 investor letter. Here is what it said:
“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
8. Uber Technologies, Inc. (NYSE:UBER)
Bloom Tree Partners’ Stake Value: $28.7 million
Percentage of Bloom Tree Partners’ 13F Portfolio: 3.42%
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) is the developer and operator of tech applications that offer mobility services. The platform serves customers with different transportation types and delivery services including freight, ride-sharing, food, and grocery delivery, etc. The firm operates on a large scale in Latin America, Asia, Canada, Europe, the United States, the Middle East, and Africa.
Needham analyst Bernie McTernan maintained a Buy rating on Uber Technologies, Inc. (NYSE:UBER) stock with a price target of $77.
According to the database of Insider Monkey, Brad Gerstner’s Altimeter Capital Management is the leading stakeholder in Uber Technologies, Inc. (NYSE:UBER) with 24.5 million shares worth $1.09 billion, making up 8.79% of the fund’s portfolio.
On December 14, CEO of Uber Technologies, Inc. (NYSE:UBER), Dara Khosrowshahi, revealed that the company did well on all of its fronts in the previous week. He also mentioned that the company was still reeling from the effects of the pandemic but the current trends seemed positive.
Tollymore Investment Partners mentioned Uber Technologies, Inc. (NYSE:UBER) in its third-quarter 2021 investor letter. Here is what it said:
“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimising externalities. For example, Uber broke the link between hailing a taxi. Uber is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”
7. Meta Platforms, Inc. (NASDAQ:FB)
Bloom Tree Partners’ Stake Value: $32.99 million
Percentage of Bloom Tree Partners’ 13F Portfolio: 3.93%
Number of Hedge Fund Holders: 248
On December 20, Loop Capital analyst Alan Gould maintained a Buy rating on Meta Platforms, Inc. (NASDAQ:FB) but lowered the price target from $420 to $380, highlighting the possibility of more money being thrown at the Metaverse in the coming years.
According to the third quarter filings, Bloom Tree Partners owned 97,230 shares in Meta Platforms, Inc. (NASDAQ:FB) worth $32.99 million, representing 3.93% of the fund’s portfolio. The fund decreased its activity in the company by 31% in the third quarter of 2021.
Canterbury Tollgate mentioned Meta Platforms, Inc. (NASDAQ:FB) in its third-quarter 2021 investor letter. Here is what is said:
“To say traditional media is anti-Facebook would not be an overstatement. An already intense and multi-year critique of (or attack on) Facebook has ratcheted up in recent weeks. Facebook’s research efforts have been reported on, if often derided, for nearly a decade. Going back to 2014, Slate.com called their research practices “unethical” when FB tried to study the impact social posts had on users. Now those efforts have been turned against them for the kill shot.
My job is to observe, assess, and allocate. Not to commentate on all the whims and wishes of media narrative. However, in the case of Facebook I cannot avoid going into some detail re: the onslaught against them, which I find to be most unwarranted and insincere.
Last month the Wall Street Journal ran a five-piece series titled “The Facebook Files” which allegedly shows how toxic Instagram is for teens. The foundation of their argument was a single slide from an internal presentation claiming, based on FB’s own research, that of teens who had a negative self-image, one-third said Instagram “made them feel worse.”iii Somehow the implication here is that this is not an inescapable aspect of either the human psyche and/or society-atlarge, but that it is of Facebook’s doing…” (Click here to see the full text)
6. Workday, Inc. (NASDAQ:WDAY)
Bloom Tree Partners’ Stake Value: $34.14 million
Percentage of Bloom Tree Partners’ 13F Portfolio: 4.06%
Number of Hedge Fund Holders: 72
Workday, Inc. (NASDAQ:WDAY) is a company that develops cloud-based software and applications for organizations for human capital and financial management. The company’s software is utilized by industries such as tech, healthcare, education, finance, life sciences, retail, hospitality, etc.
Out of the 867 hedge funds tracked by Insider Monkey, 72 funds held stakes in Workday, Inc. (NASDAQ:WDAY) worth $6.38 billion in the third quarter. Bloom Tree Partners decreased its stakes in the company by 16% in the same quarter.
According to the database of Insider Monkey, Connecticut-based Lone Pine Capital had the most stakes in Workday, Inc. (NASDAQ:WDAY) with 4.97 million shares worth $1.24 billion, making up 4.18% of the portfolio.
Workday, Inc. (NASDAQ:WDAY) is a noteworthy investment in the portfolio of Bloom Tree Partners alongside Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:FB).
Workday, Inc. (NASDAQ:WDAY) was mentioned in ClearBridge Investments’ first-quarter 2021 investor letter. Here is what is said:
“In addition to the new issue market, we have been tactically adding growth exposure. We took advantage of the selloff in disruptors that comprise a large portion of the portfolio to initiate a position in enterprise software maker Workday.”
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Disclosure: None. Alok Agrawal’s Bloom Tree Partners Portfolio: Technology Stock Picks is originally published on Insider Monkey.