Next Century Growth Investors, LLC, an investment Management Company, released its “SMID Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. October had negative returns from the equity markets in the fourth quarter of 2023, but November and December saw a robust market rally that produced positive returns for the quarter. The strategy returned 4.84% (net of fees) compared to 12.59% for the Russell 2500™ Growth Index. Over the trailing year, the strategy returned 15.46% compared to 18.93% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
NCG SMID Cap Growth Strategy featured stocks like Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in the fourth quarter 2023 investor letter. Headquartered in Boise, Idaho, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides web-based solutions for investment data aggregation, reconciliation, accounting, and reporting services. On March 19, 2024, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $16.98 per share. One-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was -13.89%, and its shares gained 15.90% of their value over the last 52 weeks. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) has a market capitalization of $4.635 billion.
NCG SMID Cap Growth Strategy stated the following regarding Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its fourth quarter 2023 investor letter:
“Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides a software platform to simplify investment accounting and analytics for asset managers, insurance companies, and corporations. The company has been gaining share in a fragmented and large end market, and is currently generating around $400m in revenue of a targeted multibillion dollar end market opportunity. CWAN was part of the 2021 IPO class – many of these companies came public at high valuations and with high expectations, and then experienced poor stock performance. CWAN delivered solid fundamentals throughout that period, most recently experiencing >20% revenue growth and 30% EBITDA margins in Q3’23, but the stock has not done much since the IPO. With a more attractive valuation now, we believe there is opportunity for compounding of company value ahead.”
A wide shot of a large financial data center.
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was held by 26 hedge fund portfolios, compared to 12 in the previous quarter, according to our database.
We discussed Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in another article and shared the list of best growth stocks under $25. In addition, please check out our hedge fund investor letters Q4 2023 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.
