Shares of P&C insurance software vendor Guidewire Software,Inc. (GWRE, Financial) detracted from performance. The company's transition to the cloud has caused short-term financial headwinds and slowed the cadence of new license sales. We retain conviction. We believe new products and cloud delivery will triple Guidewire's total addressable market. Over time, we think Guidewire will become the key software vendor for the global P&C insurance industry, capturing 30% to 50% of its $15 billion to $30 billion market and generating margins in excess of 40%.
From Ron Baron (Trades, Portfolio)'s Baron Partners Fund third-quarter 2020 shareholder letter.
