Should You Continue to Hold Guidewire Software (GWRE) Despite the Decline?

Baron Funds, an investment management company, released its “Baron Partners Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. The third quarter witnessed extreme volatility in the financial market. However, the fund outperformed the benchmark indexes and rose 10.00% (Institutional Shares) in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds discussed stocks like Guidewire Software, Inc. (NYSE:GWRE) in the Q3 2022 investor letter. Headquartered in San Mateo, California, Guidewire Software, Inc. (NYSE:GWRE) is a software product-providing company for P&C insurers. On November 1, 2022, Guidewire Software, Inc. (NYSE:GWRE) stock closed at $58.31 per share. One-month return of Guidewire Software, Inc. (NYSE:GWRE) was -11.48% and its shares lost 52.61% of their value over the last 52 weeks. Guidewire Software, Inc. (NYSE:GWRE) has a market capitalization of $4.903 billion.

Baron Funds made the following comment about Guidewire Software, Inc. (NYSE:GWRE) in its Q3 2022 investor letter:

“Shares of P&C insurance software vendor Guidewire Software, Inc. (NYSE:GWRE) detracted from performance due to broader multiple compression in high-growth stocks. We remain shareholders. Guidewire has crossed the midpoint of its cloud transition, which should correspond with improving financial results. Guidewire has tripled its potential market through new products and cloud delivery. Over time, we think Guidewire will be the key software vendor for the global P&C insurance industry, with 30% to 50% of its $15 billion to $30 billion total addressable market and margins above 40%.”


Photo by Danial Igdery on Unsplash

Guidewire Software, Inc. (NYSE:GWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Guidewire Software, Inc. (NYSE:GWRE) at the end of the second quarter which was 28 in the previous quarter.

We discussed Guidewire Software, Inc. (NYSE:GWRE) in another article and shared the list of tech stocks that billionaire Ray Dalio is selling. 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.