Is ANSYS (ANSS) a Good Long-Term Bet?

Baron Funds, an investment management company, released its “Baron Growth Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 1.61% compared to 0.24% up for the Russell 2000 Growth Index. The fund’s performance was in-line with the benchmark in the quarter, which was attributed to stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like ANSYS, Inc. (NASDAQ:ANSS) in the Q3 2022 investor letter. Headquartered in Canonsburg, Pennsylvania, ANSYS, Inc. (NASDAQ:ANSS) is a software development company that develops and markets simulation software and services. On November 15, 2022, ANSYS, Inc. (NASDAQ:ANSS) stock closed at $254.21 per share. One-month return of ANSYS, Inc. (NASDAQ:ANSS) was 18.68%, and its shares lost 36.35% of their value over the last 52 weeks. ANSYS, Inc. (NASDAQ:ANSS) has a market capitalization of $22.145 billion.

Baron Funds made the following comment about ANSYS, Inc. (NASDAQ:ANSS) in its Q3 2022 investor letter:

ANSYS, Inc. (NASDAQ:ANSS) is a leading provider of physics-based simulation software. Despite an upbeat analyst day and results that exceeded analyst estimates, shares got caught up in the broader sell-off of software stocks. The risk that ANSYS’ customers will cut back on software purchases in a moderating macro environment, thus pressuring its large deals cadence and growth profile, also weighed on shares. Despite these short-term challenges, we think ANSYS will benefit from secular trends, differentiated products, and strategic customer relationships in the long term.”

software

Photo by Danial Igdery on Unsplash

ANSYS, Inc. (NASDAQ:ANSS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held ANSYS, Inc. (NASDAQ:ANSS) at the end of the second quarter, which was 42 in the previous quarter.

We discussed ANSYS, Inc. (NASDAQ:ANSS) in another article and shared Baron Funds’ 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.