Baron Financials ETF on Guidewire Software, Inc.

Baron believes Guidewire's recent weakness was caused primarily by deal timing rather than deterioration in its business. Several contracts slipped from the fiscal third quarter into the fourth quarter and subsequently closed in the current period. Guidewire's position as a core system of record for insurance carriers gives it a strategically important data platform. Baron expects AI to expand the company's growth potential by enabling additional automation and intelligence on top of that platform.