Shares of FactSet Research Systems, Inc. (FDS, Financial), a leading provider of investment management tools, detracted during the quarter after the company reported weak guidance for fiscal year 2020 and announced a new three-year investment plan to accelerate revenue growth. This negatively impacted its stock price in the near term due to the perception that margins will not increase for two years. We retain conviction in FactSet due to its large addressable market, consistent execution on both new product development and financial results, and robust free cash flow.
From Ron Baron (Trades, Portfolio)'s Baron Focused Growth Fund third-quarter 2019 shareholder letter.
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