Eagle First Investments: “Salesforce (CRM) is a Big-Tent Approach to Value Investing”

·2 min read

Eagle First Investments, an investment management company, recently published its second-quarter 2022 investor letter. The same can be downloaded here. The firm believes in value investing. The firm’s philosophy is open to growth, but only if the growth creates intrinsic value. It relies on the fact that value investing will generate long-term positive returns across all business cycles.  You can view the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter 2022, Eagle First Investments discussed companies like Salesforce, Inc. (NYSE:CRM). It is a customer relationship management technology company, headquartered in San Francisco, California. The stock of  Salesforce, Inc. (NYSE:CRM) closed at $191.27 per share on August 4, 2022, and it has a market capitalization of $190.314 billion. On a monthly time frame, Salesforce, Inc. (NYSE:CRM)  had a return of 8.99%, whereas its 12-month return dropped to -23.67%.

Here is what Eagle First Investments specifically mentioned about Salesforce, Inc. (NYSE:CRM) in its Q2 2022 investor letter:

"Salesforce, Inc. (NYSE:CRM) is a prime example of our big-tent approach to value investing. Though the US-based provider of cloud-based customer-relationship management (CRM) software would be considered a growth stock by many metrics, we believe its profile is suggestive of a business with unrecognized franchise value that may make for an attractive investment opportunity at an appropriate “margin of safety.” Salesforce has a dominant market position in the CRM space, especially in a cloud segment that by our estimate has been growing at approximately 20% per year as enterprises increasingly embrace the benefits of software-as-a-service. Recent years have seen the company prudently adapt its offerings through organic product extensions and expand into adjacent verticals through acquisition while migrating toward an integrated CRM platform model. Salesforce’s mature, durable market position, track record of cash flow generation and well-aligned management team gives us confidence that it possesses identifiable franchise value—in contrast with many of its peers in the technology space, whose investors often are paying for unrealized earnings and early-stage business development strategies."

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Salesforce, Inc. (NYSE:CRM) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 114 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the first quarter which was 110 in the previous quarter.

We discussed Salesforce, Inc. (NYSE:CRM) in another article, published in May, that shared Vulcan Value Partners’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.