Baron Funds, an investment management company, released its “Baron Discovery Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. Baron Discovery Fund (the Fund) reached its 10-year anniversary on September 30, 2023. Since inception, on a cumulative basis, the fund was up 195.3% (Institutional Shares) compared to the Russell 2000 Growth Index’s 91.6% return. During the quarter, the fund returned -5.36% (Institutional Shares) compared to -7.32% return for the benchmark. The bond market became the latest headwind to stock market performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Discovery Fund highlighted stocks like Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in the third 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 November 8, 2023, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $19.20 per share. One-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was -5.14%, and its shares gained 11.30% of their value over the last 52 weeks. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) has a market capitalization of $4.537 billion.
Baron Discovery Fund made the following comment about Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its Q3 2023 investor letter:
“Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides portfolio accounting and reporting software. Shares rose after the company reported solid second quarter earnings, demonstrating strong underlying business trends, and raised its full-year guidance for 2023. The company also hosted an upbeat Investor Day where it gave strong medium-term guidance calling for 20%-plus revenue growth and an annual margin expansion of 200 basis points. We believe Clearwater has robust competitive advantages and the potential to compound revenue at more than 20%. The company has an efficient business model that should drive 40%-plus adjusted EBITDA margins over time.”
A close-up of a server running a cloud-native platform, symbolizing the power of the software-as-a-service (SaaS) business area.
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of second quarter which was 19 in the previous quarter.
We discussed Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in another article and shared Polen U.S. SMID Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 15 Best American Dividend Stocks To Buy Now
- 16 Best Consistent Dividend Stocks to Invest In
- 12 Best Undervalued Dividend Stocks To Buy Now
Disclosure: None. This article is originally published at Insider Monkey.
