Giverny Capital Asset Management, LLC, an investment management company, recently published its third-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm’s model portfolio returned -3.01% (net) in the third quarter compared to -3.27% return for the S&P 500 Total Return Index. YTD, the fund returned 11.02% compared to the 13.07% return for the Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Giverny Capital Asset Management highlighted stocks like SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in the third quarter 2023 investor letter. Headquartered in Windsor, Connecticut, SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is a software products and software-enabled services provider to the financial and healthcare sectors. On November 6, 2023, SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) stock closed at $52.63 per share. One-month return of SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) was 0.73%, and its shares gained 6.13% of their value over the last 52 weeks. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) has a market capitalization of $13.027 billion.
Giverny Capital Asset Management made the following comment about SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in its Q3 2023 investor letter:
“We exited a larger position in SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) during the quarter. We’re fans of this business and its founder and CEO Bill Stone, but SS&C financed a large acquisition in 2018 by issuing debt at floating interest rates. As rates climbed over the past two years, SS&C’s interest payments on its debt have risen from about $202 million in 2021 to an estimated $460 million this year. This heavier burden of debt service is devouring modest underlying profit growth. SS&C will report lower earnings per share in 2023 than it did in 2021 entirely because of the burden of interest payments.
Bill Stone owns more than 30 million shares of SS&C; no one has a stronger interest in making prudent financial decisions than Bill. We could revisit SS&C at some point if it made significant progress in reducing its floating rate debt. But with the debt burden currently high, the cost to service the debt rising, and the business growing slowly, it feels like SS&C made a capital allocation error that will take time to unwind.”
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SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) at the end of second quarter which was 43 in the previous quarter.
We discussed SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in another article and shared what billionaire Seth Klarman thinks about the stock market outlook, his investing principles, and what he recommends to investors. In addition, please check out our hedge fund investor letters Q3 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.