Polen Capital, an investment management firm, released its “U.S. Small Company Growth Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. In the third quarter, the U.S. Small Company Growth Composite Portfolio, referred to as the “Portfolio,” posted returns of -3.66% gross and -3.97% net of fees. This performance is in contrast to the -7.32% return of the Russell 2000 Growth Index, known as the “Index.” Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Polen U.S. Small Company Growth mentioned Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and explained its insights for the company. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a Boise, Idaho-based software-as-a-service fintech company with a $4.4 billion market capitalization. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) delivered a -1.17% return since the beginning of the year, while its 12-month returns are up by 10.23%. The stock closed at $18.53 per share on November 3, 2023.
Here is what Polen U.S. Small Company Growth has to say about Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its Q3 2023 investor letter:
“Clearwater Analytics is a leading provider of investment portfolio reporting and analytics solutions. It uses advanced data and analytics to serve as the book of record across many asset classes for investment managers, corporations, insurers, and pension funds. The company analyzes and reports over $6.4 trillion in daily assets across numerous accounts. Their software simplifies operations and ensures accuracy, speed, and scalability—adding significant value for customers while reducing complexity. We believe that the company is poised to sustain its robust growth trajectory, achieving annual top-line growth of 20% with meaningful margin expansion over our five-year investment horizon. Clearwater Analytics is a great example of a Flywheel company with a unique and sticky product, high net recurring revenue, a significant runway for growth, and a business model and competitive advantage that strengthens with scale.”
A close-up of a server running a cloud-native platform, symbolizing the power of the software-as-a-service (SaaS) business area.
Our calculations show that Clearwater Analytics Holdings, Inc. (NYSE:CWAN) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was in 13 hedge fund portfolios at the end of the second quarter of 2023, compared to 19 funds in the previous quarter. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) delivered a 6.56% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
