Multi-Year Migration Impacted Guidewire Software (GWRE) in Q2

Conestoga Capital Advisors, an asset management company, released its “Mid Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Mid Cap Composite rose 8.70% net of fees in the second quarter, outperforming the Russell Midcap Growth Index’s 6.23% return. Year-to-date, the strategy returned 19.82% net of fees compared to a 15.94% return for the benchmark. The strategy benefited from the positive stock selection in five of the seven sectors in which it is invested. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga Mid Cap Strategy highlighted stocks like Guidewire Software, Inc. (NYSE:GWRE) in the second quarter 2023 investor letter. Headquartered in San Mateo, California, Guidewire Software, Inc. (NYSE:GWRE) is a software product-providing company for P&C insurers. On August 10, 2023, Guidewire Software, Inc. (NYSE:GWRE) stock closed at $82.59 per share. One-month return of Guidewire Software, Inc. (NYSE:GWRE) was 4.72%, and its shares gained 0.76% of their value over the last 52 weeks. Guidewire Software, Inc. (NYSE:GWRE) has a market capitalization of $6.727 billion.

Conestoga Mid Cap Strategy made the following comment about Guidewire Software, Inc. (NYSE:GWRE) in its second quarter 2023 investor letter:

“Guidewire Software, Inc. (NYSE:GWRE): GWRE is a best-in-class provider of core software solutions for property and casualty insurers. The company’s multi-year migration from license to cloud software deployment has been choppy and this quarter was no different. While cloud margins are improving with scale, services revenue missed expectations due to the complexity of implementations and some fixed fee agreements.”

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Guidewire Software, Inc. (NYSE:GWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Guidewire Software, Inc. (NYSE:GWRE) at the end of first quarter which was 43 in the previous quarter.

We discussed Guidewire Software, Inc. (NYSE:GWRE) in another article and shared Baron Asset Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 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.