Shares of property and casualty (P&C) insurance software vendor Guidewire Software, Inc. fell in the first quarter as high-growth, high-multiple technology stocks sold off aggressively. Guidewire (GWRE, Financial) is the leader among P&C core systems vendors, as evidenced by near-perfect retention rates, growing installed base, and accelerating adoption of its complete suite. It is in the early innings of a core system replacement cycle, and is expanding its market through persistent innovation. We think recent deals with six Tier 1 vendors represent a tipping point in demand. (Neal Rosenberg)
From Baron Opportunity Fund first quarter 2016 commentary.
