Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Strategy” Q3 2022 investor letter. A copy of the same can be downloaded here. The Mid Company Composite returned -4.52% in the quarter compared to a -0.65% return for the Russell Midcap Growth Index. The firm invests in mission-critical companies and owns companies with a competitive advantage and skilled managers. In addition, check the fund’s top five holdings to know its best picks in 2022.
Brown Capital Management highlighted stocks like Paycom Software, Inc. (NYSE:PAYC) in the Q3 2022 investor letter. Headquartered in Oklahoma City, Oklahoma, Paycom Software, Inc. (NYSE:PAYC) is a Human Resource Management solution provider. On December 20, 2022, Paycom Software, Inc. (NYSE:PAYC) stock closed at $303.82 per share. One-month return of Paycom Software, Inc. (NYSE:PAYC) was -7.15%, and its shares lost 27.96% of their value over the last 52 weeks. Paycom Software, Inc. (NYSE:PAYC) has a market capitalization of $18.235 billion.
Brown Capital Management made the following comment about Paycom Software, Inc. (NYSE:PAYC) in its Q3 2022 investor letter:
“Paycom Software, Inc. (NYSE:PAYC) is one of the fastest-growing, cloud-based integrated human capital management (HCM) software companies. Its software provides a wide variety of HR functions including payroll, benefits, time and attendance, training, performance management, and compensation. Paycom is winning new customers because the HR enterprise-software industry has transformed from single-point solutions stitched together, to integrated HCM systems residing on a single cloud-based platform. Paycom’s integrated system means employers have lower costs and fewer data-quality challenges, and employees have a better experience accessing all of the payroll, benefits, training and performance tools that are relevant for their professional lives. Paycom has several notable competitors but it has maintained an edge through effective sales execution, good technology, terrific customer service, and strong product breadth.
Despite market fears of a recession, shares appreciated in the second quarter as Paycom’s sales and profit growth exceeded expectations. Additionally, the company’s earnings report contained positive commentary on new customer additions and upgrades to its Beti software platform. Paycom has $1 billion of sales and is growing 20% annually, a rate faster than most of its peers. Based on discussions with the company, the total addressable market exceeds $10 billion and we see a growth opportunity that could span many years.”
Paycom Software, Inc. (NYSE:PAYC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Paycom Software, Inc. (NYSE:PAYC) at the end of the third quarter, which was 43 in the previous quarter.
We discussed Paycom Software, Inc. (NYSE:PAYC) in another article and shared Polen Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
