Wasatch Small Cap Growth Strategy Lowered Clearwater Analytics Holdings’ (CWAN) Weight

Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. small-cap stocks experienced significant gains this quarter, despite volatility. They initially dipped after President Trump announced unexpectedly high tariff rates, but quickly rebounded as his economic team showed signs of softening their stance. Against this backdrop, the Strategy performed in line with the Russell 2000® Growth Index’s 11.97% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Wasatch Small Cap Growth Strategy highlighted stocks such as Clearwater Analytics Holdings, Inc. (NYSE:CWAN). Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a technology company that develops and provides a Software-as-a-Service (SaaS) for investment analytics and reporting solutions. The one-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was -7.64%, and its shares lost 8.50% of their value over the last 52 weeks. On August 4, 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $20.55 per share, with a market capitalization of $5.824 billion.

Wasatch Small Cap Growth Strategy stated the following regarding Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its second quarter 2025 investor letter:

“Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was another detractor. Clearwater Analytics offers a software platform for investment accounting, compliance, risk management and reporting that gives asset managers and insurers daily insights into portfolio holdings. During the quarter, the stock reacted negatively as the company completed its acquisition of a software provider for the investment management and hedge fund industry. We continue to like Clearwater but lowered the stock’s weight in the strategy as we assess what the acquisition might mean for Clearwater’s business.”

Is Clearwater Analytics Holdings Inc. (CWAN) the Best Low Beta Tech Stock to Buy According to Analysts?

A wide shot of a large financial data center.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of the first quarter, which was 48 in the previous quarter. In the first quarter of 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) reported revenue of $126.9 million, representing an increase of 23.5% year-on-year. While we acknowledge the risk and potential of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and shared Baron Discovery Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 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.