Clearwater Analytics Holdings (CWAN) Rallied Following an Acquisition Announcement

19 hours ago 1

Soumya Eswaran

Tue, February 3, 2026 astatine 7:40 AM CST 3 min read

Baron Funds, an concern absorption company, released its “Baron Discovery Fund” fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The Fund focuses connected long-term, competitively positioned companies that are well-managed and person important imaginable successful untapped markets. The missive besides addressed the advancements successful AI and however humans specify themselves successful the changing landscape. In Q4, the money generated a instrumentality of 0.19% (Institutional Shares), underperforming the Russell 2000 Growth Index by 1.03 percent points. Over the full year, the money posted a instrumentality of 10.96%, portion the Index returned 13.01%. The outperformance of low-quality and short-term terms momentum-oriented stocks affected the Fund’s absorption connected semipermanent valuation metrics. The apical 10 holdings comprised 26.7% of the Fund’s nett assets, with currency making up 3.3%. The Fund maintains beardown optimism and expects a high-growth, low-inflation situation successful 2026. Please reappraisal the Fund’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, Baron Discovery Fund highlighted stocks similar Clearwater Analytics Holdings, Inc. (NYSE:CWAN). Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides exertion solutions for accounting and reporting and is simply a important contributor to the fund’s show successful the quarter. On February 2, 2026, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) banal closed astatine $24.08 per share. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) delivered a 0.04% instrumentality successful the past month, and its shares are down 15.21% implicit the past 12 months. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) has a marketplace capitalization of $7.167 billion.

Baron Discovery Fund stated the pursuing regarding Clearwater Analytics Holdings, Inc. (NYSE:CWAN) successful its 4th fourth 2025 capitalist letter:

"Clearwater Analytics Holdings, Inc. (NYSE:CWAN), a supplier of portfolio accounting and reporting software, contributed to performance. The institution reported coagulated 3rd 4th 2025 net and raised 2025 guidance. Clearwater besides announced that a consortium of backstage equity investors intends to get the company, which drove a crisp affirmative marketplace reaction. We clasp condemnation and judge Clearwater has meaningful competitory advantages and the imaginable to compound gross astatine charismatic rates for respective years. The institution has an businesslike concern exemplary that should thrust 40%-plus adjusted EBITDA margins implicit time."

Is Clearwater Analytics Holdings Inc. (CWAN) the Best Low Beta Tech Stock to Buy According to Analysts?

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge money portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) astatine the extremity of the 3rd quarter, compared to 51 successful the erstwhile quarter. While we admit the imaginable of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.