Here’s Why Aspen Technology (AZPN) Outperformed in Q3


Baron Funds, an investment management company, released its “Baron Small Cap Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund had a fine quarter and is having a good year. The fund was down 3.11% (Institutional Shares) in the third quarter, in a weak market and year-to-date the fund was up 12.92%. The Fund outperformed the Russell 2000 Growth Index, which fell 7.32% in the quarter and is only up 5.24% year-to-date. The Fund slightly outperformed the S&P 500 Index in the quarter but is trailing year-to-date. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Small Cap Fund highlighted stocks like Aspen Technology, Inc. (NASDAQ:AZPN) in the third quarter 2023 investor letter. Headquartered in Bedford, Massachusetts, Aspen Technology, Inc. (NASDAQ:AZPN) offers industrial software. On November 27, 2023, Aspen Technology, Inc. (NASDAQ:AZPN) stock closed at $183.95 per share. One-month return of Aspen Technology, Inc. (NASDAQ:AZPN) was 3.49%, and its shares lost 16.01% of their value over the last 52 weeks. Aspen Technology, Inc. (NASDAQ:AZPN) has a market capitalization of $11.718 billion.

Baron Small Cap Fund made the following comment about Aspen Technology, Inc. (NASDAQ:AZPN) in its Q3 2023 investor letter:

“Shares of industrial automation software leader Aspen Technology, Inc. (NASDAQ:AZPN) reported financial results that surpassed consensus expectations and provided initial guidance calling for “at least 11.5%” growth for 2024. Looking further out, we believe Aspen is well positioned to generate consistent double-digit growth in contract value, driven by secular adoption of industrial automation technologies that help improve productivity, reduce cost, and control emissions. We expect the businesses acquired through Aspen’s merger with a subsidiary of Emerson to meaningfully contribute to financial results in 2024 and beyond, as management continues to make product and operational improvements with much of the integration and re-platforming now complete. Aspen generates significant FCF, which it can use to fund both an aggressive share repurchase program and accretive M&A activity over the long term.”

An industrial facility floor with employees walking around PEM fuel cell applications.

Aspen Technology, Inc. (NASDAQ:AZPN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Aspen Technology, Inc. (NASDAQ:AZPN) at the end of third quarter which was 16 in the previous quarter.

We discussed Aspen Technology, Inc. (NASDAQ:AZPN) in another article and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company. 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.


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