Baron Funds Sees Bright Future in Endava (DAVA)

Baron Funds, an asset management firm, published its “Baron Discovery Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.13% was delivered by the fund’s institutional shares for the fourth quarter of 2021, which was better than the Russell 2000 Growth Index’s 0.01% return, but below the S&P 500 Index’s gain of 11.03% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Discovery Fund, in its Q4 2021 investor letter, mentioned Endava plc (NYSE: DAVA) and discussed its stance on the firm. Endava plc is a United Kingdom-based software company with a $7.3 billion market capitalization. DAVA delivered a -29.00% return since the beginning of the year, while its 12-month returns are up by 48.70%. The stock closed at $119.23 per share on January 20, 2022.

Here is what Baron Discovery Fund has to say about Endava plc in its Q4 2021 investor letter:

“Endava plc provides consulting and outsourced software development for business customers. Shares outperformed after the company reported better-than-expected quarterly results with 55% revenue growth and 89% EPS growth. Full-year financial guidance was raised to reflect strong demand across all verticals and geographies. Management expects organic revenue growth to exceed 30% this year and 20% over the long term with upside from accretive acquisitions. We continue to own the stock because 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) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. DAVA was in 16 hedge fund portfolios at the end of the third quarter of 2021, compared to 16 funds in the previous quarter. Endava plc (NYSE: DAVA) delivered a 48.70% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on DAVA 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.