Tiger Global Management, which Chase Coleman manages, was the best performing hedge fund in the pandemic year, with over $10 billion in returns. So Insider Monkey opens us up to the strategy used in its article The 10 Best Software Stocks to Buy according to Billionaire Chase Coleman. Investing in software stocks can be said to have powered its performance. After some correction in the first quarter, software stocks rebounded strongly on the back of the prospects of sustainable revenue growth. New technologies like artificial intelligence and Internet of Things (IoT) have also helped develop software stocks. Chase Coleman’s Tiger Capital grew its assets from $25 million in seed capital to over $41 billion at the end of last year. During the fourth quarter, Coleman’s hedge fund initiated positions in 14 stocks, and it added to its existing positions in 14 more. Most of these stocks belong to the software industry. Chase Coleman has a two-decades-long track record of beating the market. His fund, which was launched in 2013, has returned 22% annually since its inception. While Chase Coleman’s reputation is still intact, the industry’s reputation has been tarnished by the past decade, as its returns couldn’t keep up with the market’s unhedged returns.
For the best software stocks, the analysis starts with Tiger Global Management, led by Chase Coleman, which raised its stake in DocuSign by 491% during the fourth quarter of last fiscal year. The company’s robust financial performance drove its shares higher. In recent months, the number of hedge funds that held DocuSign shares increased significantly. The stock was in record number of hedge funds’ portfolios. Datadog is a good buy for new investors. According to Chase, it is a great long-term investment. Although Tiger Global Management sold 20% of its stake in Zoom Video Communications during the fourth quarter, it is still considered one of the best software stocks to own. For all the technicalities and the other companies on this list, read The 10 Best Software Stocks to Buy According to Billionaire Chase Coleman.
