Should You Still Invest in Veeva Systems (VEEV)?

Baron Funds, an asset management firm, published its “Baron Asset Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Against this backdrop, Baron Asset Fund (the “Fund”) gained 5.04% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) gained 2.85%, and the S&P 500 Index gained 11.03%. The Fund’s outperformance was attributable to favorable stock selection and tailwinds from certain style biases, notably its underexposure to the poor performing residual volatility and beta factors. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Asset Fund, in its Q4 2021 investor letter, mentioned Veeva Systems Inc. (NYSE: VEEV) and discussed its stance on the firm. Veeva Systems Inc. is a Pleasanton, California-based computer software company with a $34.2 billion market capitalization. VEEV delivered a -12.84% return since the beginning of the year, while its 12-month returns are down by -22.37%. The stock closed at $222.68 per share on January 20, 2022.

Here is what Baron Asset Fund has to say about Veeva Systems Inc. in its Q4 2021 investor letter:

“Veeva Systems Inc. is a cloud software provider focused on the life sciences market. As its clients accelerated their digital transformation initiatives throughout the pandemic, Veeva achieved record new software bookings. The company’s shares fell during the quarter as more normalized demand trends dampened Veeva’s near-term growth trajectory. As digital tools drove efficiencies at pharmaceutical clients, they reduced the number of their sales representatives, which pressured Veeva’s seat-based-priced commercial business. We remain confident that Veeva will continue to benefit from the life sciences industry’s ongoing modernization initiatives by selling its innovative end-to-end software platform.”

Our calculations show that Veeva Systems Inc. (NYSE: VEEV) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. VEEV was in 44 hedge fund portfolios at the end of the third quarter of 2021, compared to 44 funds in the previous quarter. Veeva Systems Inc. (NYSE: VEEV) delivered a -31.54% return in the past 3 months.

In March 2021, we also shared another hedge fund’s views on VEEV in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.