Here’s Why WNS (Holdings) Limited (WNS) Declined in Q4

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Diamond Hill Capital, an investment management company, released its “Small Cap Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q4 2023, the strategy returned 15.49% compared to 14.03% for the Russell 2000 Index. The relative outperformance in Q4 came from the strong performance of Financials and consumer discretionary holdings while industrials and healthcare holdings detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Diamond Hill Small Cap Fund featured stocks such as WNS (Holdings) Limited (NYSE:WNS) in the fourth quarter 2023 investor letter. Headquartered in Mumbai, India, WNS (Holdings) Limited (NYSE:WNS) is a business process management (BPM) company. On February 5, 2024, WNS (Holdings) Limited (NYSE:WNS) stock closed at $60.21 per share. One-month return of WNS (Holdings) Limited (NYSE:WNS) was -4.90%, and its shares lost 31.71% of their value over the last 52 weeks. WNS (Holdings) Limited (NYSE:WNS) has a market capitalization of $2.818 billion.

Diamond Hill Small Cap Fund stated the following regarding WNS (Holdings) Limited (NYSE:WNS) in its fourth quarter 2023 investor letter:

"Our bottom contributors in Q4 included Civitas Resources and WNS (Holdings) Limited (NYSE:WNS). Shares of India-based business process management company WNS Holdings declined as investors believe it is not winning in the generative artificial intelligence (AI) race, potentially impairing its growth trajectory. However, we believe this interpretation misunderstands WNS’s services and is unrelated to concerns about the potential impact of AI on the business. We continue to like WNS’s business model, which generates recurring revenues among a relatively sticky customer base given high switching in in-housing costs."

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WNS (Holdings) Limited (NYSE:WNS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held WNS (Holdings) Limited (NYSE:WNS) at the end of third quarter which was 23 in the previous quarter.

We discussed WNS (Holdings) Limited (NYSE:WNS) in another article and shared TimesSquare U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. 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.