Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The Mid Company Fund returns of 14.08% in the quarter slightly lagged the 14.55% return for the Russell Midcap Growth Index. The fund declined 27.14% for the full year compared to a 25.87% return for the benchmark. In addition, check the fund’s top five holdings to know its best picks in 2023.
Brown Capital Management Mid Company Fund featured stocks like Manhattan Associates, Inc. (NASDAQ:MANH) in the Q4 2023 investor letter. Headquartered in Atlanta, Georgia, Manhattan Associates, Inc. (NASDAQ:MANH) is a software development company. On March 26, 2024, Manhattan Associates, Inc. (NASDAQ:MANH) stock closed at $249.58 per share. One-month return of Manhattan Associates, Inc. (NASDAQ:MANH) was -1.74%, and its shares gained 66.01% of their value over the last 52 weeks. Manhattan Associates, Inc. (NASDAQ:MANH) has a market capitalization of $15.366 billion.
Brown Capital Management Mid Company Fund stated the following regarding Manhattan Associates, Inc. (NASDAQ:MANH) in its fourth quarter 2023 investor letter:
“Among the top contributors for the fourth quarter were Shopify (SHOP) and Manhattan Associates, Inc. (NASDAQ:MANH). Manhattan Associates is a leader of supply-chain execution and omnichannel software. The company’s solutions optimize all facets of a supply-chain ecosystem, providing real-time inventory visibility, demand planning and forecasting, labor scheduling, and tools that improve customer engagement. Today’s consumers expect options when shopping beyond the traditional buy online/ship to home. They want to buy online and pick up in store, curbside or another location, all with flexible returns. They also want the visibility provided by real-time tracking and regular notifications. These changing consumer preferences require a more sophisticated and flexible supply-chain operation, which Manhattan provides.
Manhattan has performed admirably over the years and this quarter was no exception. Quarterly earnings results exceeded expectations across the board, with revenue rising 20% and non-GAAP operating margins expanding 450 basis points year over year, well above consensus estimates. All key performance indicators—client adds, win rates and new bookings—were strong. Manhattan’s pivot to a cloud-first company which began in 2017 continues to pay dividends, with cloud-subscription revenue rising 44% during the quarter and now comprising nearly 30% of overall revenue. On top of tremendous management execution, we believe Manhattan is benefitting from the post-pandemic push by businesses to modernize their supply chains. We have owned Manhattan Association since 2016 and feel even better about its prospects today.”
A woman and man in formal attire in a meeting room discussing the latest enterprise solutions technology from the company.
Manhattan Associates, Inc. (NASDAQ:MANH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Manhattan Associates, Inc. (NASDAQ:MANH) was held by 32 hedge fund portfolios, compared to 26 in the previous quarter, according to our database.
We discussed Manhattan Associates, Inc. (NASDAQ:MANH) in another article and shared the list of top mid-cap tech companies in the US. 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.
