Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Core Growth Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed its benchmark index, the Russell 2000 Growth which gained 4.13%. The Russell 2000 Index rose 6.23% in the same period. The stock price strength of healthcare holdings led to the outperformance of the strategy in the quarter relative to the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Wasatch Small Cap Core Growth Strategy highlighted stocks like Q2 Holdings, Inc. (NYSE:QTWO) in the Q4 2022 investor letter. Headquartered in Austin, Texas, Q2 Holdings, Inc. (NYSE:QTWO) is a cloud-based digital solutions provider for financial institutions. On March 20, 2023, Q2 Holdings, Inc. (NYSE:QTWO) stock closed at $22.47 per share. One-month return of Q2 Holdings, Inc. (NYSE:QTWO) was -29.16%, and its shares lost 65.01% of their value over the last 52 weeks. Q2 Holdings, Inc. (NYSE:QTWO) has a market capitalization of $1.376 billion.
Wasatch Small Cap Core Growth Strategy made the following comment about Q2 Holdings, Inc. (NYSE:QTWO) in its Q4 2022 investor letter:
“IT accounted for several of the greatest detractors from strategy performance during the fourth quarter. Among these were Paylocity Holding Corp. (PCTY), CyberArk Software Ltd. (CYBR) and Q2 Holdings, Inc. (NYSE:QTWO).
Q2 Holdings provides cloud-based digital[1]banking solutions to regional and community financial institutions. The company reported mixed results in its most recent quarter, with revenues missing expectations. Management cited macroeconomic headwinds, which have impacted transaction-based services and caused larger customers to defer some discretionary projects. On the plus side, Q2’s success landing new contracts highlighted underlying strength in the demand environment and bodes well for future growth. Having recently visited the company, we’re maintaining our positive long-term outlook and we’ve modestly increased the strategy’s position in the stock.”
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Q2 Holdings, Inc. (NYSE:QTWO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Q2 Holdings, Inc. (NYSE:QTWO) at the end of the fourth quarter which was 24 in the previous quarter.
We discussed Q2 Holdings, Inc. (NYSE:QTWO) in another article and shared Artisan Small Cap Fund’s views on the company. 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.
