Shares of Guidewire Software, Inc. (NYSE:GWRE), a property and casualty (P&C) insurance software vendor, fell as high-growth, high-multiple technology stocks sold off aggressively during the quarter. We continue to believe that Guidewire is the leader among P&C core IT systems vendors, as evidenced by near-perfect retention rates, growing installed base, and accelerating adoption of its complete suite. We believe that the P&C industry is in the early stages of a very large replacement cycle of its core systems, and Guidewire should be an important beneficiary of this cycle. We think that the company’s recent deals with six Tier 1 P&C firms are indicative of the demand for its software.
From Baron Asset Funds' first quarter 2016 commentary.
