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Equity Hedge Fund Soars 30% by Buying Undervalued Tech Stocks

  • SQN Investors first-half return beats tech-stock fund peers
  • Firm recently hired new partner Farouk Hussein from HGGC

A $1.5 billion value-oriented equity hedge fund climbed 30% in the first half by buying tech stocks amid Covid-19 induced market dislocations and the return of volatility.

SQN Investors bet on companies focused on cloud computing and digital transformation, according to an investor letter. It has made 10 new investments this year, including software companies ServiceNow Inc., Zendesk Inc., Avalara Inc. and Five9 Inc., a March 31 regulatory filing shows. All were up in the first six months, with tax-compliance software maker Avalara rising the most at about 82%.