Interest rates

Do you think Ceridian HCM Holding (CDAY) benefited from higher interest rates?

Baron Funds, an investment management company, has released its third quarter 2022 “Baron Asset Fund” investor letter. A copy of it may be downloaded here. In the third quarter, the fund (institutional shares) fell 2.07% against a decline of 0.65% for the Russell Midcap Growth Index. Differences in sector weightings caused the fund to underperform during the quarter. Additionally, please see the fund’s top five holdings for its top picks in 2022.

Baron Funds discussed stocks such as Ceridian HCM Holding Inc. (NYSE:CDAY) in the Third Quarter 2022 Letter to Investors. Minneapolis, Minnesota-based Ceridian HCM Holding Inc. (NYSE: CDAY) is a human capital management software company. On October 21, 2022, Ceridian HCM Holding Inc. (NYSE: CDAY) stock closed at $57.91 per share. The one-month return of Ceridian HCM Holding Inc. (NYSE: CDAY) was 6.73% and its shares have lost 55.11% of their value over the past 52 weeks. Ceridian HCM Holding Inc. (NYSE: CDAY) has a market cap of $8.864 billion.

Baron Funds made the following comment about Ceridian HCM Holding Inc. (NYSE: CDAY) in its third quarter 2022 letter to investors:

“Shares of Ceridian HCM Management Inc. (NYSE: CDAY), a global leader in payroll and human capital management software, gained during the period. Growth of Ceridian’s flagship platform, Dayforce, accelerated to 30%, helped by market share gains, increased sales to larger customers, early traction in international markets and successful growing in cross-selling additional products to existing customers. We expect Ceridian’s growth rate to be enhanced by its Wallet suite, which allows employees to request and receive salaries as they are earned, at no cost to the employer or the employee. Workers will likely prefer this feature to most current payroll systems that only distribute wages once a week or every two weeks. We also expect Ceridian to benefit from higher interest rates, which the company earns on its large short-term cash balances. »

Training employees having a meeting inside the conference room

Ceridian HCM Holding Inc. (NYSE: CDAY) is not on our list of 30 most popular stocks among hedge funds. According to our database, 25 hedge fund portfolios held Ceridian HCM Holding Inc. (NYSE:CDAY) at the end of the second quarter, up from 24 in the prior quarter.

We discussed Ceridian HCM Holding Inc. (NYSE: CDAY) in another article and shared Artisan Partners’ views on the business. Additionally, please see our Letters to Hedge Fund Investors Q3 2022 page for more letters from hedge fund investors and other leading investors.

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Disclosure: none. This article originally appeared on Insider Monkey.