Home Hedge Funds Reason for the Decline of Veeva Systems (VEEV) in Q4

Reason for the Decline of Veeva Systems (VEEV) in Q4


The Ithaka Group, an investment advisory firm, released the “Ithaka US Growth Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. After a difficult 2022, most major market indices rebounded in 2023 with a 42.7% gain for the Russell 1000 Growth (R1G), the strongest performance in about 25 years. In the strong market, the strategy outperformed by rising 18.4% vs the R1G rising 14.2%. The outperformance was entirely due to stock selection, with a slight benefit from sector allocation. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Ithaka US Growth Strategy featured stocks such as Veeva Systems Inc. (NYSE:VEEV) in the Q4 2023 investor letter. Headquartered in Pleasanton, California, Veeva Systems Inc. (NYSE:VEEV) is a cloud-based software provider for the life sciences industry. On February 8, 2024, Veeva Systems Inc. (NYSE:VEEV) stock closed at $215.39 per share. One-month return of Veeva Systems Inc. (NYSE:VEEV) was 3.21%, and its shares gained 27.74% of their value over the last 52 weeks. Veeva Systems Inc. (NYSE:VEEV) has a market capitalization of $34.681 billion.

Ithaka US Growth Strategy stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its fourth quarter 2023 investor letter:

“Since its inception, Veeva Systems Inc. (NYSE:VEEV) has grown to become the leading SaaS provider of cloud solutions for the global life sciences industry. Veeva’s industry-specific cloud solutions provide data, software, and services to address a broad range of needs, including multi-channel customer relationship management, content management, master data management, and customer data management. Veeva’s products help its customers bring products to market faster while maintaining compliance with government regulations. Veeva’s underperformance in the quarter was due to cautious commentary provided on their quarterly earnings call, with management pointing to a challenging macro environment, pushing companies to look for cost reductions by delaying service engagements or using more internal resources.”

A close-up of a server running a cloud-native platform, symbolizing the power of the software-as-a-service (SaaS) business area.

Veeva Systems Inc. (NYSE:VEEV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of third quarter which was 46 in the previous quarter.

We discussed Veeva Systems Inc. (NYSE:VEEV) in another article and shared Artisan Developing World Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.

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