Here’s Why Baron Funds Remains Bullish in Endava (DAVA)

Baron Funds, an asset management firm, published its “Baron FinTech Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.65% was delivered by the fund’s institutional shares for the third quarter of 2021, compared to the S&P 500 Index, which appreciated 0.58%, and the FactSet Global FinTech Index which rose 3.72% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron FinTech Fund, in its Q3 2021 investor letter, mentioned Endava plc (NYSE: DAVA) and discussed its stance on the firm. Endava plc is a United Kingdom-based software company with a $9 billion market capitalization. DAVA delivered a 90.91% return since the beginning of the year, while its 12-month returns are up by 119.37%. The stock closed at $146.52 per share on December 02, 2021.

Here is what Baron FinTech Fund has to say about Endava plc  in its Q3 2021 investor letter:

“Endava plc provides outsourced software development for business customers. Shares increased on quarterly results and guidance that exceeded Street expectations. Following a brief slowdown in the early months of the pandemic, business has fully rebounded and accelerated as clients recognize the need for greater investment in digital transformation. Management expects organic revenue growth to exceed 20%, with upside from accretive acquisitions. We believe Endava will continue gaining share in a large global market for IT services.”

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Based on our calculations, Endava plc (NYSE: DAVA) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. DAVA was in 16 hedge fund portfolios at the end of the third quarter of 2021. Endava plc (NYSE: DAVA) delivered an 8.05% return in the past 3 months.

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