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Here’s Why You Should Really Consider Buying DocuSign (DOCU) Shares

·2 min read

Polen Capital, an investment management firm, published its “Polen Focus Growth” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter of 2021, the Polen Focus Growth Composite Portfolio (the “Portfolio”) returned 5.24% and 5.07% gross and net of fees, respectively. The Russell 1000 Growth Index (the “Index”) returned 11.64%, and the S&P 500 (the “S&P”) 11.03%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Polen Focus Growth, in its Q4 2021 investor letter, mentioned DocuSign, Inc. (NASDAQ: DOCU) and discussed its stance on the firm. DocuSign, Inc. is a San Francisco, California-based electronic signature technology company with a $23.7 billion market capitalization. DOCU delivered a -21.12% return since the beginning of the year, while its 12-month returns are down by -52.88%. The stock closed at $120.14 per share on February 16, 2022.

Here is what Polen Focus Growth has to say about DocuSign, Inc. in its Q4 2021 investor letter:

"We opportunistically purchased a new position in DocuSign amid what we believe is a short-term execution issue. DocuSign dominates the market for electronic signatures and is expanding into adjacent areas like contract lifecycle management, AI-based contract analysis, and e-notary services.

It has 1.1 million customers, including over 160,000 large enterprise and commercial customers. DocuSign’s business consists of almost entirely subscription-based revenue with over 120% net revenue retention rates currently. The business is also profitable and cash generative.

DocuSign has over 350 pre-built integrations with many of the most important software applications from Microsoft, Salesforce.com, Workday, and many others. Their e-signature product is embedded into applications that people use every day. E-signatures were already beginning to replace “wet” signatures pre-COVID but substantially accelerated as workforces became mostly remote in 2020. Once businesses move to e-signatures, they typically do not go back."


Our calculations show that DocuSign, Inc. (NASDAQ: DOCU) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. DOCU was in 51 hedge fund portfolios at the end of the third quarter of 2021, compared to 58 funds in the previous quarter. DocuSign, Inc. (NASDAQ: DOCU) delivered a -55.02% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on DOCU in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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