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Is Five9 (FIVN) A Smart Long-Term Buy?

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ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. During the first quarter, the ClearBridge Mid Cap Growth Strategy outperformed the benchmark Russell Midcap Growth Index. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

ClearBridge Investments, in its Q1 2021 investor letter, mentioned Five9, Inc. (NASDAQ: FIVN), and shared their insights on the company. Five9, Inc. is a San Ramon, California-based software company that currently has an $11.2 billion market capitalization. Since the beginning of the year, FIVN delivered a -4.07% return, while its 12-month gains are up by 65.94%. As of June 01, 2021, the stock closed at $173.94 per share.

Here is what ClearBridge Investments has to say about Five9, Inc. in its Q1 2021 investor letter:

"Five9 is a cloud-based contact center as a service software provider that is replacing aging on-premise legacy solutions that dominate the installed base. Companies are being forced to modernize and cloud penetration is still low; Five9 is positioned to benefit and should see further growth driven by its cross-selling add-on modules and an AI product that generates high revenue."

15 biggest Canadian software companies
15 biggest Canadian software companies

Copyright: welcomia / 123RF Stock Photo

Our calculations show that Five9, Inc. (NASDAQ: FIVN) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Five9, Inc. was in 45 hedge fund portfolios, compared to 47 funds in the fourth quarter of 2020. FIVN delivered a -4.61% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.

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