Here’s Why a Good Reason to Buy Guidewire Software (GWRE) Shares

Baron Funds, an asset management firm, published its “Baron Growth Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of 6.56% was delivered by the fund’s institutional shares for the fourth quarter of 2021 and 15.84% for the year. This exceeded the Fund’s primary benchmark, the Russell 2000 Growth Index (the “Benchmark”), which gained 0.01%. The S&P 500 Index, which measures the performance of publicly-traded large-cap U.S. companies, gained 11.03% during the period. For the full year, the Fund gained 20.15%, meaningfully exceeding its Benchmark, which gained 2.83%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Growth Fund, in its Q4 2021 investor letter, mentioned Guidewire Software, Inc. (NYSE: GWRE) and discussed its stance on the firm. Guidewire Software, Inc. is a San Mateo, California-based software company with a $7.9 billion market capitalization. GWRE delivered a -16.30% return since the beginning of the year, while its 12-month returns are down by -26.16%. The stock closed at $95.02 per share on February 11, 2022.

Here is what Baron Growth Fund has to say about Guidewire Software, Inc. in its Q4 2021 investor letter:

“We have seen our businesses exercise their pricing power more aggressively in recent months. Guidewire Software, Inc. will benefit from the same rise in premium rates, as its customers pay an annual software license fee that is tied to the amount of premiums written by insurers.”

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Our calculations show that Guidewire Software, Inc. (NYSE: GWRE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. GWRE was in 26 hedge fund portfolios at the end of the third quarter of 2021, compared to 27 funds in the previous quarter. Guidewire Software, Inc. (NYSE: GWRE) delivered a -24.11% return in the past 3 months.

In May 2021, we also shared another hedge fund’s views on GWRE 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.