Should You Hold nCino (NCNO)?

Baron Funds, an investment management company, released its “Baron FinTech Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund gained 4.98% (Institutional Shares) compared to a 7.56% gain for the S&P 500 benchmark index and a 3.91% return for the FactSet Global FinTech Index. Favorable stock selection in Information Services, Payments, and Capital Markets contributed to the gains of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron FinTech Fund highlighted stocks like NCino, Inc. (NASDAQ:NCNO) in its Q4 2022 investor letter. Headquartered in Wilmington, North Carolina, NCino, Inc. (NASDAQ:NCNO) is a software-as-a-service company. On February 17, 2023, NCino, Inc. (NASDAQ:NCNO) stock closed at $28.60 per share. One-month return of NCino, Inc. (NASDAQ:NCNO) was 4.88%, and its shares lost 32.78% of their value over the last 52 weeks. NCino, Inc. (NASDAQ:NCNO) has a market capitalization of $3.176 billion.

Baron FinTech Fund made the following comment about NCino, Inc. (NASDAQ:NCNO) in its Q4 2022 investor letter:

“Shares of NCino, Inc. (NASDAQ:NCNO), a provider of cloud-based software for banks and credit unions, detracted from performance. The company reported solid earnings results and stronger margins but guided to slightly slower revenue growth in fiscal year 2023 than analysts expected. Management has also been cautious on the near-term macro environment. We retain long-term conviction as nCino has highly regarded products and operates in a large market as most banks still require meaningful investment in digital transformation.”

NCino, Inc. (NASDAQ:NCNO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held NCino, Inc. (NASDAQ:NCNO) at the end of the third quarter, which was 18 in the previous quarter.

We discussed NCino, Inc. (NASDAQ:NCNO) in another article and shared the list of companies in the limelight after releasing their financial results.. In addition, please check out our hedge fund investor letters Q4 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.