| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.5% | -2.7% | 1.8% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 1.8% | 11.9% | 30.9% | -31.4% | 17.1% | 24.1% |
Polen Global Growth posted a -2.5% gross return in Q4 2025, underperforming the MSCI ACWI's +3.3% return as the market favored high-beta growth stocks over quality growth investing. The quarter mirrored the full year with sharp sell-offs followed by V-shaped recoveries, driven by AI bubble concerns that were alleviated by strong NVIDIA earnings. Top contributors included Eli Lilly, which rallied 40% on strong results and GLP-1 developments, along with Alphabet and TSMC. Oracle was the primary detractor, reversing Q3 gains amid skepticism over OpenAI-tied contracted revenues. The managers initiated positions in Tencent Holdings and Spotify while exiting Sage Group, Willis Towers Watson, ICON, and Workday to optimize positioning. Despite near-term headwinds from market style preferences, the team remains focused on competitive advantages and long-term fundamentals. They believe the datacenter capex cycle has room to run, supported by continued demand growth, hyperscaler spending guidance, and pro-AI policies with potential rate cuts in 2026.
Polen Global Growth maintains a quality-focused approach to global growth investing, emphasizing companies with competitive advantages and strong long-term fundamentals while navigating market preferences for high-beta growth stocks.
The managers believe the datacenter capex cycle should continue for the foreseeable future with revenues and earnings for critical players continuing to grow at rapid rates. They expect the datacenter capex cycle and equity bull market has plenty of room to run, supported by pro-AI government policies and likely further rate cuts in 2026.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 21 2026 | 2025 Q4 | 0700.HK, ADBE, AMZN, BSX, CSGP, GOOGL, ICLR, LLY, MELI, NVDA, OR.PA, ORCL, PAYC, SGE.L, SHL.DE, SHOP, SPOT, TSM, WDAY, WTW | AI, global, growth, Quality, software, technology |
LLY ORCL 0700 HK SPOT |
The market experienced AI bubble concerns in Q4 that prompted a short-lived 5% sell-off, though NVIDIA's strong earnings report in late November alleviated the worst fears. Despite waning market enthusiasm in the AI trade, the managers believe the datacenter capex cycle should continue with revenues and earnings for critical players growing rapidly as they struggle to keep up with increasing demand. The portfolio's emphasis on quality growth investing was challenged by the market's preference for high-beta growth stocks, contributing to underperformance. The managers remain focused on competitive advantages and long-term business fundamentals while constantly re-assessing growth trajectories of portfolio companies competing in evolving global markets. Spotify was added as a new position, with the managers viewing it as a scaled two-sided network enjoying secular growth as streaming and smartphone proliferation become global norms. They believe music is the most under-monetized form of digital entertainment, with Spotify serving over 600 million active users and potential for greater than 20% annual free cash flow growth. Tencent Holdings was initiated as a new position, representing one of China's largest technology companies with leading positions in gaming, social media and payments. Despite economic headwinds, Tencent has remained a consistent growth business, compounding earnings growth at more than 30% annualized over the past 3 years. |
| Oct 16 2025 | 2025 Q3 | IDXX, NVDA, ORCL, SBUX | Artificial Intelligence, consumer, healthcare, quality growth, semiconductors |
ORCL SBUX IDXX GLOB |
Polen highlights AI leadership and cyclicals as key market drivers, with semiconductors up nearly 60% for the quarter. While the fund lagged due to limited exposure to semis, it added positions in Oracle, IDEXX, and Starbucks to balance growth exposure. The team maintains a disciplined focus on durable earnings compounding through high-quality, globally diversified franchises. |
| Jul 16 2025 | 2025 Q2 | AON, GLOB, IDXX, NVDA, ORCL, SBUX, SHOP | Balance Sheets, Global Growth, Pricing Power, Quality, Resilience |
ORCL SBUX IDXX GLOB |
The letter highlights global quality growth as a defensive yet compounding strategy amid geopolitical uncertainty and uneven economic growth. Management stresses balance sheet strength, pricing power, and recurring revenue as key drivers of resilience. The portfolio is positioned to benefit from long-term global demand trends rather than regional macro calls. |
| Apr 15 2025 | 2025 Q1 | ABT, ADYEN NA, AMZN, AON, GLOB, MELI, NVDA, NVO, SAP GR, WTW | - | - | |
| Jan 16 2025 | 2024 Q4 | ABNB, ADBE, AMZN, CSGP, GOOG, ICLR, MC FP, NVO, OR FP, ORCL, PAYC, SHOP | - | - | |
| Oct 23 2024 | 2024 Q3 | AMZN, AON, GOOG, MSCI, NVO, ORCL, SAP GR, SHOP | - | - | |
| Jul 16 2024 | 2024 Q2 | ADBE, ADSK, AMZN, GOOG, MC FP, MSCI, NVDA, PAYC, SHOP, WDAY, ZTS | - | - | |
| May 9 2024 | 2024 Q1 | AAPL, ABNB, ADBE, AMZN, GLOB, NESR GR, NVDA, PAYC, SAP GR, SGE LN | - | - | |
| Dec 1 2024 | 2023 Q4 | ABT, ADP, ALGN, AMZN, AON, EL, NESN SW, NVO, SAP, WDAY | - | - | |
| Oct 19 2023 | 2023 Q3 | 0PMJ LN, ADBE, GOOG, ICON, LVMHF, MSCI, NOVOB DC | - | - | |
| Jul 19 2023 | 2023 Q2 | ADBE, ADSK, GLOB, MSFT, NVDA, TMO, WDAY | - | - | |
| Apr 19 2023 | 2023 Q1 | ABT, ALGN, MA, MSFT, TMO, V | - | - | |
| Oct 26 2022 | 2022 Q3 | ADBE, ADP, ADS, ADSK, AMZN, ICLR, OR | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
GamingNintendo continues to demonstrate exceptional performance with Switch 2 becoming the fastest-selling console in history, selling 17.4 million units in just 7 months. The company has a historically rich first-party software pipeline and is building new recurring revenue streams through Nintendo Switch Online and its expanding cinematic universe. |
Nintendo Console Software Hardware Entertainment | |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
StreamingNetflix represents the fund's exposure to global streaming entertainment, despite near-term headwinds from subscriber growth concerns and content spending. The fund continues to view Netflix as the dominant global streaming platform with durable competitive advantages through its content library, technology infrastructure, and growing advertising business. |
Content Global Advertising Platform Entertainment | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
Quality Growth |
||
| 2025 Q2 |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 16, 2025 | Fund Letters | Damon Ficklin | IDXX | IDEXX Laboratories, Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | Animal Health, diagnostics, Razor-And-Blade, recurring revenue, secular growth | Login |
| Jul 16, 2025 | Fund Letters | Damon Ficklin | GLOB | Globant S.A. | Information Technology | IT Consulting & Other Services | Bear | New York Stock Exchange | Consulting, Cyclicality, Digital transformation, guidance, IT services | Login |
| Jan 21, 2026 | Fund Letters | Damon Ficklin | LLY | Eli Lilly and Company | Health Care | Pharmaceuticals | Bull | New York Stock Exchange | Glp1, growth, innovation, pharmaceuticals, Pricing | Login |
| Jan 21, 2026 | Fund Letters | Damon Ficklin | ORCL | Oracle Corporation | Information Technology | Application Software | Bull | New York Stock Exchange | AI, backlog, cloud, Execution, valuation | Login |
| Jan 21, 2026 | Fund Letters | Damon Ficklin | 0700 HK | Tencent Holdings Limited | Communication Services | Interactive Media & Services | Bull | New York Stock Exchange | advertising, AI, China, Gaming, Payments | Login |
| Jan 21, 2026 | Fund Letters | Damon Ficklin | SPOT | Spotify Technology S.A. | Communication Services | Movies & Entertainment | Bull | New York Stock Exchange | Engagement, Freecashflow, monetization, network, Streaming | Login |
| Oct 16, 2025 | Fund Letters | Damon Ficklin | ORCL | Oracle Corp. | Information Technology | System Software | Bull | NYSE | AI infrastructure, backlog, cloud migration, operating leverage, recurring revenue | Login |
| Oct 16, 2025 | Fund Letters | Damon Ficklin | SBUX | Starbucks Corp. | Consumer Discretionary | Restaurants | Bull | NASDAQ | Digital, international expansion, Margins, Throughput, turnaround | Login |
| Oct 16, 2025 | Fund Letters | Damon Ficklin | IDXX | IDEXX Laboratories Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | FCF, Pricing power, product innovation, recurring revenue, Veterinary diagnostics | Login |
| Oct 16, 2025 | Fund Letters | Damon Ficklin | GLOB | Globant S.A. | Information Technology | IT Consulting & Other Services | Bear | NYSE | Demand slowdown, IT services, pipeline, Utilization, Valuation risk | Login |
| Jul 16, 2025 | Fund Letters | Damon Ficklin | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | New York Stock Exchange | AI infrastructure, cash flow, cloud migration, Databases, recurring revenue | Login |
| Jul 16, 2025 | Fund Letters | Damon Ficklin | SBUX | Starbucks Corporation | Consumer Discretionary | Restaurants | Bull | NASDAQ | Brand, consumer, operating leverage, Restaurants, turnaround | Login |
| TICKER | COMMENTARY |
|---|---|
| 0700.HK | Shinya also visited Shenzhen, where Star Magnolia Capital organized an educational visit for our families to Tencent's headquarters, alongside meetings with several promising early-stage companies. |
| ADBE | By looking at their Rnancials, FactSet, PayPal, Adobe, and Salesforce seem to be doing Rne. The market, however, is reading subdued revenue growth as a sign of increased competition on their core oSerings. These companies' outlooks look more di'cult than their past. |
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| BSX | However, Boston Scientific has fallen sharply following an earnings report on February 4 that missed expectations. |
| CSGP | The shares of CoStar Group, Inc., the global leader in digitizing real estate, declined in the fourth quarter, due to concerns that the company's residential Homes.com platform will continue to require significant capital investment and competitive worries that Google's new real estate advertisement format and Zillow's OpenAI partnership could divert traffic from Homes.com in the years ahead. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| ICLR | We also decided to exit our relatively small position in ICON plc. We remain optimistic about Icon's long-term prospects but growth for the company in the short to intermediate term still appears challenged to us. Without the conviction to add to our existing weight we feel it is better to reallocate to other opportunities where the business momentum is stronger. |
| LLY | Eli Lilly shares were a top performer in 4Q25 after delivering strong Q3 2025 earnings in October. Revenue rose 54% year-over-year to $17.6 billion, and adjusted EPS of $7.02 beat consensus of $6.02. Growth was driven by its GLP-1 franchises, Mounjaro and Zepbound, where sales more than doubled year-over-year, alongside strength in other therapeutic areas. Management raised full-year guidance for both revenue and earnings, reinforcing investor confidence in the company's growth outlook. |
| MELI | E-commerce Volatility: turbulence in our e-commerce portfolio companies, Sea Ltd (Southeast Asia) and MercadoLibre (Latin America), amidst aggressive price wars. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| OR.PA | In 2024, it seemed to us that other investors were unduly focused on a slowdown in consumer spending in China, an important market for L'Oréal yet contributing only 17% of its sales. L'Oréal is a broad, balanced business such that in any given year, faster-growing parts of the world will typically offset the weaker ones. We saw this in 2025, where strength in markets such as Europe, the Middle East and South America offset sluggish markets in China and the US, allowing L'Oréal to deliver a year of solid earnings growth. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. |
| PAYC | Paycom Software was the top detractor during the quarter. The U.S.-headquartered human resources and employment services company's stock price declined alongside peers due to broad underperformance in the application software sector. We continue to believe Paycom has a long runway for future growth and that system-of-record software companies like Paycom will not be replaced by AI. We appreciate management's focus on ramping share repurchases, which we believe will add significant per-share value at today's stock price. |
| SGE.L | By contrast, we exited our small position in Sage Group to help fund our new positions in Spotify and Tencent. Sage's business is doing fine but we believe there are better opportunities currently in those other businesses and without the confidence to add to our current weight, we feel it is more appropriate to move on from the business for the time being. |
| SHL.DE | During the quarter, we also initiated a position in Siemens Healthineers, a global leader in medical imaging and advanced therapies. The company is well placed to benefit from structural megatrends, such as aging demographics, greater emphasis on personalised care and the rising prevalence of chronic diseases. |
| SHOP | Shopify Inc. is a cloud-based software provider for multi-channel commerce. Shares rose 8.3% in the fourth quarter, finishing 2025 up 51.1% on strong financial results that outperformed Street expectations. The company is demonstrating rapid growth at scale with gross merchandise value (GMV) and revenues each growing over 30% year-on-year. |
| SPOT | Spotify is the world's leading audio streaming platform. Third-quarter results showed continued operating progress, with users increasing 11% to 713 million and subscribers growing 12% to 281 million. Meanwhile, operating income expanded to a mid-teens margin, alongside a record quarterly free cash flow. Despite the momentum, the shares weakened as investors reset near-term margin expectations. Spotify has been a top contributor to long-term Fund performance, and we remain confident that pricing, product innovation, advertising efficiency, and an expanding ecosystem can continue to widen margins over time, as reinforced this quarter by the launch of Spotify recommendations within ChatGPT. |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
| WDAY | Finally, we have exited our relatively small position in Workday. The company's growth has decelerated the past few quarters and the Financials segment of the business (~25% of sales) is growing slower than we believe it should be. This is a company we may revisit at a later date but, for now, feel that we have better opportunities in other areas of the portfolio. |
| WTW | Additionally, we exited our position in Willis Towers Watson. While we believe the company is performing fine from an operational standpoint, we couldn't justify owning two insurance brokers with the possibility of the insurance industry entering a 'soft market' period for the next few years. |
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