Baron Funds: “Endava (DAVA) Will Continue Gaining Share in a Large Global Market”

Baron Funds, an asset management firm, published its “Baron Fintech Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. In the quarter ended June 30, 2022, Baron FinTech Fund (the “Fund”) fell 22.40% (Institutional Shares) compared with a 16.10% decline for the S&P 500 Index (the “Benchmark”) and a 22.80% decline for the FactSet Global FinTech Index (the “Index”). Since inception (December 31, 2019), the Fund has risen 3.81% on an annualized basis compared with an 8.27% gain for the Benchmark and a 5.25% decline for the FactSet Global FinTech Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Fintech Fund mentioned Endava plc (NYSE:DAVA) and explained its insights for the company. Founded in 2000, Endava plc (NYSE:DAVA) is a London, United Kingdom-based software development company with a $5.2 billion market capitalization. Endava plc (NYSE:DAVA) delivered a -44.02% return since the beginning of the year, while its 12-month returns are down by -30.89%. The stock closed at $94.01 per share on September 06, 2022.

Here is what Argosy Investors has to say about Endava plc (NYSE:DAVA) in its Q1 2022 investor letter:

“Endava plc provides consulting and outsourced software development for business customers. Shares fell despite strong business momentum, with 51% revenue growth and 43% EPS growth in the prior quarter and a more positive outlook for the fiscal year. The share price decline reflected concern about macroeconomic uncertainty potentially weighing on client demand and the impact of currency depreciation, given that two-thirds of revenue comes from non-U.S. customers. We believe Endava will continue gaining share in a large global market for IT services.”

Photo by Austin Distel on Unsplash

Our calculations show that Endava plc (NYSE:DAVA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Endava plc (NYSE:DAVA) was in 13 hedge fund portfolios at the end of the first quarter of 2022, compared to 15 funds in the previous quarter. Endava plc (NYSE:DAVA) delivered a -11.65% return in the past 3 months.

In June 2022, we also shared another hedge fund’s views on Endava plc (NYSE:DAVA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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