Do you think the acquisition of software assets will accelerate the growth of Aspen Technology (AZPN)?

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Baron Funds, an investment management company, has released its Q3 2022 “Baron Small Cap Fund” Investor Letter. A copy of it may be downloaded here. In the third quarter, the fund fell 3.64% (institutional stocks), underperforming the Russell 2000 Growth Index, up 0.24%, and outperforming the S&P 500 Index, down 4.88 %. Additionally, please see the fund’s top five holdings for its top picks in 2022.

Baron Funds discussed stocks like Aspen Technology, Inc. (NASDAQ:AZPN) in its third quarter 2022 letter to investors. Bedford, Massachusetts-based Aspen Technology, Inc. (NASDAQ: AZPN) is an asset management software provider. On October 31, 2022, Aspen Technology, Inc. (NASDAQ: AZPN) stock closed at $241.45 per share. Aspen Technology, Inc.’s (NASDAQ: AZPN) one-month return was -3.44% and its three-month return was 16.17%. Aspen Technology, Inc. (NASDAQ: AZPN) has a market capitalization of $15.581 billion.

Here’s what Baron Funds specifically said about Aspen Technology, Inc. (NASDAQ:AZPN) in its Q3 2022 letter to investors:

“Aspen Technology, Inc. (NASDAQ: AZPN), a leader in process automation software, completed the transformational acquisition of software assets from Emerson Electric and delivered strong results. The stock increased accordingly. Annual spending in Aspen’s legacy business accelerated and exceeded forecasts as end markets remained robust. They indicated that customer receptivity to the newly acquired assets is strong and the integration is progressing well. The company also announced another acquisition which should be accretive to growth and margins and, in our minds, is the first of many transactions we expect from the new company. We expect Aspen management to improve margins and cash flow of acquired businesses by converting them into recurring revenue models, while leveraging Emerson’s large sales force to improve growth rates. . We strengthened our position in Aspen in May this year, ahead of the Emerson deal, and we are excited about the prospects of the new entity. »

Software

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Aspen Technology, Inc. (NASDAQ: AZPN) is not on our list of 30 most popular stocks among hedge funds. According to our database, 18 hedge fund portfolios held Aspen Technology, Inc. (NASDAQ:AZPN) at the end of the second quarter, up from 22 in the previous quarter.

We discussed Aspen Technology, Inc. (NASDAQ:AZPN) in another article and shared Polen Capital’s views on the company in the prior quarter. Additionally, please see our Letters to Hedge Fund Investors Q2 2022 page for more letters from hedge fund investors and other leading investors.

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Disclosure: None. This article originally appeared on Insider Monkey.

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