Here’s Why Baron Funds Sold Clearwater Analytics Holdings (CWAN)’s Shares

Baron Funds, an asset management company, released its “Baron Asset Fund” investor letter. You can download a copy of the same here. In the second quarter, the fund fell 21.09%. However, the firm believes that the fund is positioned to perform well in the current market concerns of recession and inflation. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Baron Funds discussed stocks like Clearwater Analytics Holdings, Inc. (NYSE:CWAN). Headquartered in Boise, Idaho, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a software-as-a-service solution company. On August 29, 2022, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $14.93 per share. One-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was 15.56% and the year-to-date return declined to 35.03%. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) has a market capitalization of $5.132 billion.

Here is what Baron Funds specifically said about Clearwater Analytics Holdings, Inc. (NYSE:CWAN):

“We sold Clearwater Analytics Holdings, Inc. (NYSE:CWAN), a cloud-based software provider focused on accounting and reporting products for financial services companies, over concerns about the company’s valuation, given an unforgiving market environment for technology stocks.”

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was held by 10 hedge fund portfolios at the end of the second quarter compared to 4 in the previous quarter.

We discussed Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in another article and shared Baron Funds’ views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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