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 Veeva Systems Inc. (NYSE:VEEV) in the Q4 2023 investor letter. Headquartered in Pleasanton, California, Veeva Systems Inc. (NYSE:VEEV) is a cloud-based software provider for the life sciences industry. On March 26, 2024, Veeva Systems Inc. (NYSE:VEEV) stock closed at $232.68 per share. One-month return of Veeva Systems Inc. (NYSE:VEEV) was 3.24%, and its shares gained 30.24% of their value over the last 52 weeks. Veeva Systems Inc. (NYSE:VEEV) has a market capitalization of $37.535 billion.
Brown Capital Management Mid Company Fund stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its fourth quarter 2023 investor letter:
“Among the top detractors for the fourth quarter were Omnicell (OMCL) and Veeva Systems Inc. (NYSE:VEEV). Veeva Systems provides cloud-based software services to pharmaceutical and biotech companies. While best known for its industry-leading customer relationship management (CRM) software, Veeva offers dozens of products for both commercial and R&D use, helping clients navigate the complex regulatory environment for pharmaceuticals. Before its November investor day, Veeva spooked the market by cutting fourth-quarter revenue guidance citing deteriorating economic conditions. The company specifically called out the services segment, which comprises 20% of total sales, as clients more readily defer or insource these services during lean times.
Veeva has been one of our strongest performers since we first bought it in 2017. Management has been innovative and displayed strong execution throughout. So looking beyond the challenging economy, we are focusing on various company initiatives that could help sustain or even accelerate growth. These include a life-science marketing-automation solution, a patient and prescriber data platform to challenge market-leader IQVIA, and the transition from its Salesforce-powered CRM to its own fully insourced offering, to name a few. During the investor day, management increased its total addressable market estimate from $13 billion to $20 billion in light of these new opportunities. While most of these initiatives will take years to bear fruit, some could eventually become significant contributors to revenue and profitability. In the meantime, Veeva still has a sturdy base of business that should grow double digits and healthy margins should expand as the current investment cycle abates.”
A team of IT experts monitoring a network of computers managing the medical content and communications.
Veeva Systems Inc. (NYSE:VEEV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Veeva Systems Inc. (NYSE:VEEV) was held by 48 hedge fund portfolios, compared to 41 in the previous quarter, according to our database.
We discussed Veeva Systems Inc. (NYSE:VEEV) in another article and shared the list of best medical device stocks to buy. 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.
