Andvari Associates, an investment management company, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund was up 12.3% net of fees compared to a 7.5% return for the SPDR S&P 500 ETF. The firm is skeptical of investing in banks as it considers them not suitable for the long term. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Andvari Associates highlighted stocks like Tyler Technologies, Inc. (NYSE:TYL) in the first quarter 2023 investor letter. Headquartered in Plano, Texas, Tyler Technologies, Inc. (NYSE:TYL) provides software solutions and services to the public sector. On May 17, 2023, Tyler Technologies, Inc. (NYSE:TYL) stock closed at $395.13 per share. One-month return of Tyler Technologies, Inc. (NYSE:TYL) was 4.54%, and its shares gained 19.33% of their value over the last 52 weeks. Tyler Technologies, Inc. (NYSE:TYL) has a market capitalization of $16.566 billion.
Andvari Associates made the following comment about Tyler Technologies, Inc. (NYSE:TYL) in its Q1 2023 investor letter:
“One of Andvari’s worst performers in 2022 was Tyler Technologies, Inc. (NYSE:TYL). Tyler was down 40% while the S&P 500 was down 18.2%. We think Tyler currently sits at a valuation favorable to above average returns going forward. Furthermore, Tyler’s recent proxy statement2 supports Andvari’s view.
The proxy tells shareholders the board is incentivizing management to increase margins by several percentage points by the end of 2025. For context, Tyler’s margins used to be several percentage points higher than today. This is because the company sold more of its software via on-prem3 licenses as opposed to selling a subscription to use the software hosted “in the cloud” in an off-prem data center. Tyler historically let the customer decide how they wanted to purchase Tyler’s software. Since 2020, Tyler’s agnosticism has changed. Tyler now is a “cloud first” software company and has a partnership with Amazon Web Services (“AWS” is Amazon’s on-demand cloud computing platform). The company has been actively encouraging customers to choose the cloud version of their software products and to have it hosted on AWS…” (Click here to read the full text)
Tyler Technologies, Inc. (NYSE:TYL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Tyler Technologies, Inc. (NYSE:TYL) at the end of the fourth quarter which was 41 in the previous quarter.
We discussed Tyler Technologies, Inc. (NYSE:TYL) in another article and shared Brown Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.