Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Core Growth Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed its benchmark index, the Russell 2000 Growth which gained 4.13%. The Russell 2000 Index rose 6.23% in the same period. The stock price strength of healthcare holdings led to the outperformance of the strategy in the quarter relative to the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Wasatch Small Cap Core Growth Strategy highlighted stocks like Paylocity Holding Corporation (NASDAQ:PCTY) in its Q4 2022 investor letter. Headquartered in Schaumburg, Illinois, Paylocity Holding Corporation (NASDAQ:PCTY) is a software company that provides cloud-based human capital management and payroll software solutions. On March 20, 2023, Paylocity Holding Corporation (NASDAQ:PCTY) stock closed at $177.53 per share. One-month return of Paylocity Holding Corporation (NASDAQ:PCTY) was -12.96%, and its shares lost 17.15% of their value over the last 52 weeks. Paylocity Holding Corporation (NASDAQ:PCTY) has a market capitalization of $9.901 billion.
Wasatch Small Cap Core Growth Strategy made the following comment about Paylocity Holding Corporation (NASDAQ:PCTY) in its Q4 2022 investor letter:
“IT accounted for several of the greatest detractors from strategy performance during the fourth quarter. Among these were Paylocity Holding Corporation (NASDAQ:PCTY), CyberArk Software Ltd. (CYBR) and Q2 Holdings, Inc. (QTWO).
Paylocity is a good example of a company that’s seen its stock price come under pressure in spite of strong fundamentals in the underlying business. Paylocity provides cloud-based payroll and human resources software targeted at smaller firms. Although Paylocity’s most recent earnings release contained an abundance of positive takeaways, the Fed’s focus on the red-hot U.S. labor market as a source of inflationary pressures may have spooked some investors. Because a portion of Paylocity’s pricing structure is tied to employee headcounts at customer firms, revenues are vulnerable to potential upticks in layoffs and attrition. Another factor may have been the interest Paylocity earns on the cash it holds for customers—which stands to diminish if the Fed cuts interest rates in response to a slowing economy in 2023 as some investors expect.”
Photo by Austin Distel on Unsplash
Paylocity Holding Corporation (NASDAQ:PCTY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Paylocity Holding Corporation (NASDAQ:PCTY) at the end of the fourth quarter which was 32 in the previous quarter.
We discussed Paylocity Holding Corporation (NASDAQ:PCTY) in another article and shared the most promising fintech stocks to buy. 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.
