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Dayforce Inc (DAY) Fell on Concerns of Slowing Employment Growth

Baron Funds, an investment management company, released its “Baron Asset Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets continued its strong rally in the first quarter. Robust economic data and relatively strong corporate earnings boosted the rally along with the anticipation of a soft landing of the market. The fund (Institutional Shares) appreciated 6.00% in the quarter compared to 9.50% for the Russell Midcap Growth Index and 10.56% for the S&P 500 Index. Stock selection and headwinds from the Fund’s longtime style biases led the fund to underperform in the first quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Baron Asset Fund featured stocks like Dayforce Inc (NYSE:DAY) in the first quarter 2024 investor letter. Ceridian HCM Holding Inc. changed its name to Dayforce Inc. in February 2024. Incorporated in 1992, Dayforce Inc (NYSE:DAY) is a human capital management (HCM) software company. On May 13, 2024, Dayforce Inc (NYSE:DAY) stock closed at $61.85 per share. One-month return of Dayforce Inc (NYSE:DAY) was 5.55%, and its shares gained 5.74% of their value over the last 52 weeks. Dayforce Inc (NYSE:DAY) has a market capitalization of $9.766 billion.

Baron Asset Fund stated the following regarding Dayforce Inc (NYSE:DAY) in its first quarter 2024 investor letter:

"Human capital management (HCM) software leader Dayforce Inc (NYSE:DAY) fell on concerns that slowing employment growth will reduce the company’s growth rate in the near term. Although Dayforce has some direct exposure to employment levels, it is also benefiting from powerful secular trends around the modernization of HCM software and growing adoption of SaaS."

A close-up of two software engineers typing away at laptops in a modern, well-lit office.

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Dayforce Inc (NYSE:DAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Dayforce Inc (NYSE:DAY) was held by 25 hedge fund portfolios, compared to 25 in the previous quarter, according to our database.

We discussed Dayforce Inc (NYSE:DAY) in another article and shared the list of stocks whose price targets were recently trimmed by analysts. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.