Renaissance Investment Management, an investment management company, released its “Small Cap Growth Strategy” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned 1.11% (net) compared to a 0.24% return for the Russell 2000 Growth Index and a -3.38% return for the S&P/Barra Small Cap 600 Growth. Stock selection in the information technology sector and underweight position and stock selection in the Real Estate sector led to the outperformance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Renaissance Investment highlighted stocks like Model N, Inc. (NYSE:MODN) in its Q3 2022 investor letter. Headquartered in San Mateo, California, Model N, Inc. (NYSE:MODN) is a cloud based revenue management solutions provider. On December 29, 2022, Model N, Inc. (NYSE:MODN) stock closed at $40.29 per share. One-month return of Model N, Inc. (NYSE:MODN) was 1.26%, and its shares gained 32.53% of their value over the last 52 weeks. Model N, Inc. (NYSE:MODN) has a market capitalization of $1.505 billion.
Renaissance Investment made the following comment about Model N, Inc. (NYSE:MODN) in its Q3 2022 investor letter:
“A new position added during the quarter was Model N, Inc. (NYSE:MODN), a software provider of rev[1]enue management solutions that specifically address the unique vertical industry requirements of the global life sciences and technology industries. Increasing regulation and the growing com[1]plexity of guidelines continues to drive need for Model N’s solutions. Management believes the addressable market is at least $4 billion while they currently sell to less than 10% of the possible logos in the company’s core vertical markets. Moreover, Model N is less than 30% penetrated relative to the full dollar potential of selling its entire product suite. We see a large growth opportunity for the company as it continues to gain share from what historically has been a set of manual processes.”
Model N, Inc. (NYSE:MODN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Model N, Inc. (NYSE:MODN) at the end of the third quarter, which was 16 in the previous quarter.
We discussed Model N, Inc. (NYSE:MODN) in another article and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
