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Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The Mid Company Fund returned 5.43% in the quarter compared to a 6.90% return for the Russell Midcap Growth Index. For the full year, the fund declined 37.12% compared to a -26.72% return for the benchmark. In addition, check the fund’s top five holdings to know its best picks in 2022.
The Brown Capital Management Mid Company Fund highlighted stocks like Tyler Technologies, Inc. (NYSE:TYL) in the Q4 2022 investor letter. Headquartered in Plano, Texas, Tyler Technologies, Inc. (NYSE:TYL) is a software solutions and services provider for the public sector. On March 17, 2023, Tyler Technologies, Inc. (NYSE:TYL) stock closed at $326.61 per share. One-month return of Tyler Technologies, Inc. (NYSE:TYL) was -4.94%, and its shares lost 25.01% of their value over the last 52 weeks. Tyler Technologies, Inc. (NYSE:TYL) has a market capitalization of $13.659 billion.
The Brown Capital Management Mid Company Fund made the following comment about Tyler Technologies, Inc. (NYSE:TYL) in its Q4 2022 investor letter:
"Tyler Technologies, Inc. (NYSE:TYL) is a leading provider of end-to-end software for state and local governments and public-sector entities, helping increase the efficiency of a wide variety of activities, from hearing court cases to paying tax bills to issuing drivers licenses. Tyler plays in a large market that is modestly penetrated with significant opportunity going forward. The company has a long runway of growth in an end market with antiquated technology and a need to digitalize. Tyler focuses primarily on state and local governments with geographic and national scale and a product suite with end-to-end offerings. These serve as high barriers to entry as opposed to competitors who primarily compete only in geographic regions or with a point solution. Tyler has the ability to expand its Total Addressable Market and its software rarely gets replaced, hence the 98%-plus retention rates.