Brown Capital Management, an investment management company, released its “The Brown Capital Management International All Company Strategy” Q3 2022 investor letter. A copy of the same can be downloaded here. The strategy returned -9.08% in the quarter compared to a -9.80% return for the MSCI AC World ex US Index. Global uncertainty in the stock market affected the performance of the strategy. In addition, check the fund’s top five holdings to know its best picks in 2022.
Brown Capital Management highlighted stocks like SAP SE (NYSE:SAP) in its Q3 2022 investor letter. Headquartered in Walldorf, Germany, SAP SE (NYSE:SAP) is an enterprise software company. On December 20, 2022, SAP SE (NYSE:SAP) stock closed at $104.49 per share. One-month return of SAP SE (NYSE:SAP) was -4.68%, and its shares lost 23.96% of their value over the last 52 weeks. SAP SE (NYSE:SAP) has a market capitalization of $123.951 billion.
Brown Capital Management made the following comment about SAP SE (NYSE:SAP) in its Q3 2022 investor letter:
“For example, SAP SE (NYSE:SAP) is the world leader in enterprise resource planning (ERP) software. Its customers generate 87% of total global commerce, and 77% of global transaction revenues touch an SAP system. The deployment of an SAP ERP system can take years and cost millions of dollars. Once deployed, however, an ERP system becomes the central nervous system of an organization, connecting departments such as manufacturing, accounting and sales. Processes and numerous pieces of thirdparty software are typically layered on top of the ERP system, creating an ecosystem that is difficult to dislodge. SAP is transitioning its new and existing clients to the cloud, and despite the macro uncertainty, it grew its cloud backlog by 25% in the most recent quarter. (Backlog represents client work that is yet to be delivered.) SAP generates continuous revenue from its clients via maintenance and subscription fees, and even in difficult times, clients cannot shut down their core ERP software, providing a base of recurring revenue for SAP. All told, predictable revenue is 80% of SAP’s total revenue.”
SAP SE (NYSE:SAP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held SAP SE (NYSE:SAP) at the end of the third quarter, which was 16 in the previous quarter.
We discussed SAP SE (NYSE:SAP) in another article and shared the list of biggest AI companies in the world. 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.
