Clearwater Analytics (US:CWAN) Yahoo Finance·2026-02-03 13:40Core Insights - Baron Discovery Fund's fourth-quarter 2025 investor letter highlights its focus on long-term, well-managed companies with potential in untapped markets, while addressing advancements in AI and their implications for human identity in a changing landscape [1] Fund Performance - In Q4 2025, the fund generated a return of 0.19% (Institutional Shares), underperforming the Russell 2000 Growth Index by 1.03 percentage points [1] - For the entire year, the fund posted a return of 10.96%, while the Index returned 13.01% [1] - The top 10 holdings comprised 26.7% of the fund's net assets, with cash making up 3.3% [1] Clearwater Analytics Holdings, Inc. - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a significant contributor to the fund's performance, providing technology solutions for accounting and reporting [2][3] - As of February 2, 2026, Clearwater's stock closed at $24.08 per share, with a market capitalization of $7.167 billion [2] - The company reported solid Q3 2025 earnings and raised its 2025 guidance, with a consortium of private equity investors intending to acquire the company, leading to a positive market reaction [3] - Clearwater is expected to maintain adjusted EBITDA margins of over 40% due to its efficient business model [3] Hedge Fund Interest - Clearwater Analytics Holdings, Inc. was held by 33 hedge fund portfolios at the end of Q3, down from 51 in the previous quarter [4] - While the potential of Clearwater as an investment is acknowledged, certain AI stocks are believed to offer greater upside potential and less downside risk [4]