Multiple Reasons for the Outperformance of Guidewire Software (GWRE)

Baron Funds, an investment management company, released its “Baron Growth Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund gained 11.93% (Institutional Shares) compared to a 4.13% return for the Russell 2000 Growth Index and a 7.56% return for the S&P 500 Index. Favourable stock selection led the fund to generate strong absolute and relative performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Growth Fund highlighted stocks like Guidewire Software, Inc. (NYSE:GWRE) in the Q4 2022 investor letter. Headquartered in San Mateo, California, Guidewire Software, Inc. (NYSE:GWRE) is a software product-providing company for P&C insurers. On February 22, 2023, Guidewire Software, Inc. (NYSE:GWRE) stock closed at $71.52 per share. One-month return of Guidewire Software, Inc. (NYSE:GWRE) was -0.28%, and its shares lost 15.06% of their value over the last 52 weeks. Guidewire Software, Inc. (NYSE:GWRE) has a market capitalization of $5.856 billion.

Baron Growth Fund made the following comment about Guidewire Software, Inc. (NYSE:GWRE) in its Q4 2022 investor letter:

“Despite growing warnings of a recession, the businesses in which we have invested have generally continued to report strong financial results. We have investments in several businesses that reported financial results in December and, therefore, offer recent publicly available data points. Finally, Guidewire Software, Inc. (NYSE:GWRE), the leader in property & casualty (P&C) insurance core systems software, reported outstanding financial results that included approximately 40% constant currency growth in its core recurring subscription revenue line and better-than-expected net new bookings. Guidewire has invested heavily to transition its software to be delivered in the cloud and is now benefiting from a virtuous cycle of customer adoption.”

Guidewire Software, Inc. (NYSE:GWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Guidewire Software, Inc. (NYSE:GWRE) at the end of the fourth quarter which was 37 in the previous quarter.

We discussed Guidewire Software, Inc. (NYSE:GWRE) in another article and shared Baron Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.