20 Fintech Stocks Riding the AI Wave Higher

18. Enfusion, Inc. (NYSE:ENFN)

Number of Hedge Fund Holders: 17

Enfusion, Inc. (NYSE:ENFN) is a prominent provider of software-as-a-service (SaaS) solutions specifically tailored for the investment management industry. Headquartered in Chicago, Illinois, the company offers a comprehensive suite of tools, including a Portfolio Management System (PMS) that generates a real-time investment book of record, and an Order and Execution Management System (OEMS) that facilitates seamless communication and compliance among portfolio managers, traders, and compliance teams.

Enfusion, Inc. (NYSE:ENFN) reported a revenue of $49.5 million for Q2 2024, representing a year-over-year growth of 16%. The adjusted EBITDA margin of 20.5% reflects the company’s ability to maintain profitability while expanding its services.

Recent developments indicate that Enfusion, Inc. (NYSE:ENFN) is strategically scaling its engineering and product teams to accommodate an increasing number of larger asset managers adopting its platform. The appointment of Arman Artuc as Head of Engineering signifies a commitment to enhancing technological capabilities, particularly in algorithmic trading solutions. This aligns with the company’s goal of delivering cutting-edge investment solutions to its growing clientele, which now oversees over $1 trillion in net assets across 900 asset managers.

In its latest earnings call, Enfusion, Inc. (NYSE:ENFN) highlighted its ongoing investment in client services and technology to support its expansion into the institutional asset management sector. The firm signed 39 new clients in Q2 2024, a significant increase from the previous quarter, indicating strong market demand. Enfusion, Inc. (NYSE:ENFN) focus on leveraging AI to streamline operations and improve compliance is expected to drive continued growth as it targets larger, more complex firms.

Overall, Enfusion, Inc. (NYSE:ENFN) presents a compelling investment opportunity in the fintech sector, particularly as it capitalizes on the AI wave to enhance its service offerings and meet the evolving needs of asset managers.

NCG Small Cap Strategy stated the following regarding Enfusion, Inc. (NYSE:ENFN) in its Q2 2024 investor letter:

“Enfusion, Inc. (NYSE:ENFN) is a software company with a modern order execution management and portfolio accounting solution for asset managers. The addressable market is large and ripe for disruption as it is dominated by legacy competition with outdated technology. We believe the company is set up for healthy revenue growth and margin expansion in the years ahead.”