Wasatch Global Investors, an asset management company, released its “Wasatch U.S. Select Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. stocks experienced fluctuations during the third quarter but ultimately closed with strong gains. This positive outcome was partly driven by a shared belief that the U.S. economy might attain a soft landing and that interest rate reductions could be forthcoming. In September, the Federal Reserve acted on this sentiment by lowering its benchmark interest rate for the first time since 2020. Against this backdrop, strategy gained and outperformed the benchmark Russell 3000® Growth Index, which was up 3.42%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Wasatch U.S. Select Strategy highlighted stocks like Guidewire Software, Inc. (NYSE:GWRE) in its Q3 2024 investor letter. Guidewire Software, Inc. (NYSE:GWRE) offers a platform for property and casualty (P&C) insurance companies. The one-month return of Guidewire Software, Inc. (NYSE:GWRE) was -0.82%, and its shares gained 61.25% of their value over the last 52 weeks. On January 3, 2025, Guidewire Software, Inc. (NYSE:GWRE) stock closed at $172.31 per share with a market capitalization of $14.391 billion.
Wasatch U.S. Select Strategy stated the following regarding Guidewire Software, Inc. (NYSE:GWRE) in its Q3 2024 investor letter:
“One of the largest contributors to strategy performance was Guidewire Software, Inc. (NYSE:GWRE), an enterprise software provider for the property- and casualty-insurance industry. The stock was up sharply after the company reported earnings, as results were better than expected for several key metrics, including revenue, billings and annual recurring revenue. Guidewire continues to benefit as insurance companies increasingly replace their core (usually on-premises) legacy software with centralized, cloud-based offerings, and we’ve been impressed with how the company’s technology suite is gaining traction among insurers.”
An insurance adjuster reviewing images and paperwork to process a claim.
Guidewire Software, Inc. (NYSE:GWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Guidewire Software, Inc. (NYSE:GWRE) at the end of the third quarter which was 43 in the previous quarter. Total revenue of Guidewire Software, Inc. (NYSE:GWRE) was $263 million in the fiscal first quarter of 2025, which was above the high end of guidance and up 27% year-over-year. While we acknowledge the potential of Guidewire Software, Inc. (NYSE:GWRE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Guidewire Software, Inc. (NYSE:GWRE) and shared The Brown Capital Management Small Company Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 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.