Wasatch Global Investors, an investment management firm, released its “Wasatch Core Growth Fund” third quarter 2023 investor letter. The same can be downloaded here. In the third quarter, the fund’s Investor Class declined -1.76% but outperformed the benchmark Russell 2000 Growth Index, which fell -7.32%, while the broader Russell 2000 Index lost -5.13%. From a quality standpoint, on average, the stocks of companies with higher return on equity (ROE) outperformed those with lower ROE. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Wasatch Core Growth Fund highlighted stocks like PowerSchool Holdings, Inc. (NYSE:PWSC) in its Q3 2023 investor letter. Headquartered in Folsom, California, PowerSchool Holdings, Inc. (NYSE:PWSC) provides cloud-based software to the K-12 education market. On December 26, 2023, PowerSchool Holdings, Inc. (NYSE:PWSC) stock closed at $24.21 per share. One-month return of PowerSchool Holdings, Inc. (NYSE:PWSC) was 4.53%, and its shares gained 7.79% of their value over the last 52 weeks. PowerSchool Holdings, Inc. (NYSE:PWSC) has a market capitalization of $4.889 billion.
Wasatch Core Growth Fund made the following comment about PowerSchool Holdings, Inc. (NYSE:PWSC) in its Q3 2023 investor letter:
“Among our buys during the third quarter, we added PowerSchool Holdings, Inc. (NYSE:PWSC). The company is the leading provider of cloud-based software for K-12 education. The software integrates information pertaining to students, parents, teachers, classrooms and administration. Although the market for this type of software is mature, we like that PowerSchool has the dominant share and that competitors have failed to establish a meaningful foothold. Revenues have been growing by about 10% annually, which is on the low end of what we normally like to see. Going forward, we expect annual revenue growth to be in the low double-digits with very attractive EBITDA (earnings before interest, taxes, depreciation and amortization) margins in the 20% to 25% range. Moreover, PowerSchool has been cross-selling learning-management and other educational modules—which we think provide additional opportunities for significant long-term growth.”
An instructor in a virtual classroom, interacting with students around the world through the company’s courses.
PowerSchool Holdings, Inc. (NYSE:PWSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held PowerSchool Holdings, Inc. (NYSE:PWSC)at the end of third quarter which was 14 in the previous quarter.
We discussed PowerSchool Holdings, Inc. (NYSE:PWSC) in another article and shared TimesSquare Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.
