Chase Investment Counsel Corp reported a new position in Clearwater Analytics, acquiring 237,532 shares valued at $5.7 million. This position is outside the fund’s top five holdings. Clearwater Analytics delivers SaaS solutions for investment data management and reporting to institutional clients. The company’s stock has lost 17.4% over the last year.

Chase Investment Counsel rapidly increased its equity holding in Clearwater Analytics, now owning over 237,000 shares worth $5.7 million. However, private equity firms Permira and Warburg Pincus agreed to acquire Clearwater Analytics for $8.4 billion, potentially leading to a nice gain for investors. The company’s stock has underperformed the Nasdaq Composite and S&P 500.

Investors may want to avoid buying stock in Clearwater Analytics given the limited upside and potential downside risk if the acquisition deal falls through. The Motley Fool Stock Advisor did not include Clearwater Analytics in their list of 10 best stocks for investors to buy now, highlighting other potentially more lucrative investment opportunities. Stock Advisor has a total average return of 894%.

Read more at Nasdaq: Chase Investment Counsel Adds Clearwater Analytics Shares