Endava plc (DAVA) Fell Due to Soft Demand Trends

Baron Funds, an investment management company, released its “Baron Global Advantage Fund” investor letter for the second quarter of 2025. A copy of the letter can be downloaded here. In the second quarter, the fund returned 22.7% (Institutional Shares), compared to the MSCI ACWI Index’s (the Index) 11.5% gain and the MSCI ACWI Growth Index’s 17.3% gain. The Fund is up 11.2%, year-to-date, compared to gains of 10.1% and 9.3% for the benchmarks, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Global Advantage Fund highlighted stocks such as Endava plc (NYSE:DAVA). Endava plc (NYSE:DAVA) is a technology services provider for clients in the consumer products, healthcare, mobility, and retail verticals. The one-month return of Endava plc (NYSE:DAVA) was -19.60%, and its shares lost 58.89% of their value over the last 52 weeks. On August 4, 2025, Endava plc (NYSE:DAVA) stock closed at $12.18 per share, with a market capitalization of $724.155 million.

Baron Global Advantage Fund stated the following regarding Endava plc (NYSE:DAVA) in its second quarter 2025 investor letter:

“Shares of IT services provider Endava plc (NYSE:DAVA) declined 21.5% in the second quarter due to a continuation of soft demand trends. Organic revenue fell modestly in the recent quarter due to a slowdown in new projects. Management trimmed their revenue outlook to reflect slower pipeline conversion and incremental currency impacts. We remain invested because we expect these headwinds to abate over time, leading to better growth as clients return to investing in digital transformation.”

Is Endava plc (DAVA) the Undervalued Quantum Computing Stock to Buy Now?

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Endava plc (NYSE:DAVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Endava plc (NYSE:DAVA) at the end of the first quarter, compared to 17 in the previous quarter. While we acknowledge the risk and potential of Endava plc (NYSE:DAVA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ENDAVA PLC (NYSE:DAVA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Endava plc (NYSE:DAVA) and shared the list of best all-time low stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 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.