| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 7.6% | 22.5% |
| 2025 |
|---|
| 7.6% |
Polen Capital's Emerging Markets Growth strategy returned 7.58% net in Q3 2025, underperforming the MSCI Emerging Markets Index's 10.64% return. The portfolio benefited from strong performance in China, Taiwan, and Hong Kong, with top contributors including CATL (EV battery leader), Prosus (Tencent proxy), and Accton (AI infrastructure hardware). CATL delivered exceptional growth driven by next-generation battery technologies and China's energy storage roadmap targeting 180 GW capacity by 2027. Accton capitalized on surging AI infrastructure demand, doubling revenues and income. Portfolio detractors included InPost (Polish logistics), Hugel (Korean medical aesthetics), and Dino Polska (Polish retail). The managers allocated capital away from companies facing macro-economic or geopolitical challenges toward businesses benefiting from consumer spending shifts to travel and entertainment, plus electrification tailwinds. Despite near-term geopolitical and tariff uncertainties, Polen remains optimistic about Emerging Markets' long-term prospects, citing healthier balance sheets than developed markets, attractive valuations, and the region representing 86% of global population.
Polen Capital focuses on identifying the highest quality growth businesses in Emerging Markets with structural growth opportunities, deep competitive advantages, self-financed growth, robust balance sheets, and trustworthy capital stewardship, seeking undervalued businesses relative to their long-term compounding potential.
We continue to be optimistic about the long-term future of Emerging Markets, home to 86% of the world's population today. In many cases, more orthodox economic policy has left the balance sheet of Emerging Markets much healthier than their Developed counterparts, which should enable greater economic capacity to respond to geopolitical and macroeconomic turmoil. The Index trades at a discount to its Developed Market counterparts, implying it is attractively valued.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Oct 29 2025 | 2025 Q3 | 0700.HK, 145020.KS, 2330.TW, 2345.TW, 300750.SZ, BABA, DNP.WA, FMSAUBD.MX, IHCL.NS, INFY, INPST.WA, KOTAKBANK.NS, PRX.AS, RELIANCE.NS, SARE.NS, WEG3.SA | China, Electrification, emerging markets, growth, Quality, Taiwan, technology |
CATL PROS ACCT INP HUGEL DNP CATL PROS ACCT INP HUGEL DNP |
Polen's Emerging Markets Growth strategy underperformed in Q3 2025 despite strong contributions from CATL (EV batteries), Prosus (Tencent proxy), and Accton (AI infrastructure). The team allocated capital toward electrification and consumer discretionary themes while reducing exposure to macro-challenged companies. Management remains optimistic on Emerging Markets' long-term prospects given attractive valuations and healthier balance sheets versus developed markets. |
| Jul 24 2025 | 2025 Q2 | 0700.HK, 145020.KS, 2330.TW, 2345.TW, 300750.SZ, BABA, DNP.WA, FMSAUBD.MX, IHCL.NS, INFY, INPST.WA, KOTAKBANK.NS, PRX.AS, RELIANCE.NS, SARE.NS, WEG3.SA | China, emerging markets, growth, Poland, Quality, Taiwan, technology |
TME BABA DLO WIZZ LN PDD 8069 TT 300750.SZ PRX.AS 2345.TW INPST.WA 145020.KS DNP.WA |
Polen's Emerging Markets Growth strategy underperformed in Q3 despite strong China performance, driven by CATL's EV battery leadership and Prosus's Tencent exposure. Portfolio repositioning favored electrification and consumer discretionary themes while reducing geopolitically challenged exposures. Managers remain constructive on emerging markets' structural advantages including healthier balance sheets and attractive valuations relative to developed markets. |
| Apr 29 2025 | 2025 Q1 | 0700.HK, BABA, DLO, DNP.WA, INFY, INPST.L, LVS, NTES, TOTS3.SA, TSM, YUMC | AI, Brazil, China, Currency, emerging markets, Poland, security selection |
TME TOTS3.SA DNP.WA LVS DLO |
Polen Capital's emerging markets strategy underperformed in Q1 2025 due to security selection challenges, despite positive country allocation. China's AI-driven rally and Brazil's resilient exporters supported performance, while Taiwan faced tariff concerns. The team maintains conviction in high-quality growth businesses with structural advantages, remaining optimistic on emerging markets' long-term prospects given attractive valuations and urbanization trends. |
| Aug 2 2023 | 2022 Q4 | 1YL GR, 2518 HK, 8139 JP, BZG GR, DNOPY, HMPRO TB, LVS, TYG GR | - | - | |
| Oct 26 2022 | 2022 Q3 | ATHM, KARO, MBLY, MELI, TITANIN IN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q3 |
Electric VehiclesCATL, the world's largest EV battery manufacturer, saw strong performance driven by demand for next-generation battery technologies including Shenxing Superfast Charging Battery and Qilin Battery. These flagship products are set to be integrated into 67 cars this year in China and accounted for nearly 40% of CATL's EV battery shipments. |
CATL Battery Charging Technology China |
AIAccton benefited from surging global demand for AI infrastructure, which drove exceptional earnings growth with revenues and income more than doubling this year. The company makes critical physical hardware that enables data to travel efficiently across data centers and has evolved to more direct relationships with end customers. |
Infrastructure Data Centers Hardware Accelerators Growth | |
Energy StorageCATL benefitted from China's newly announced energy storage roadmap, which aims to install over 180 GW of capacity by 2027. This further boosted sentiment around the company's energy storage segment alongside its leadership in EV markets. |
ESS Capacity China Roadmap Segment | |
GamingProsus had a strong quarter driven by Tencent's continued improving operating momentum, with recent results showing an ongoing rebound in domestic games growth and strong advertising growth from increasing ad load penetration of Video accounts. |
Tencent Domestic Advertising Growth Momentum | |
| 2025 Q2 |
Electric VehiclesCATL, the world's largest EV battery manufacturer, saw strong performance driven by demand for next-generation battery technologies including Shenxing Superfast Charging Battery and Qilin Battery. These flagship products are set to be integrated into 67 cars this year in China and accounted for nearly 40% of CATL's EV battery shipments. |
CATL Battery Charging Technology China |
AIAccton benefited from surging global demand for AI infrastructure, which has driven exceptional earnings growth with revenues and income more than doubling this year. The company makes critical physical hardware that enables data to travel efficiently across data centers and has evolved to more direct relationships with end customers. |
Infrastructure Data Centers Hardware Earnings Growth | |
GamingProsus had a strong quarter driven by Tencent's continued improving operating momentum, with recent results showing an ongoing rebound in domestic games growth and strong advertising growth from increasing ad load penetration of Video accounts. |
Tencent Advertising Growth China Entertainment | |
E-commerceInPost pioneered Automated Parcel Machines for e-commerce platforms, offering compelling value by reducing costs for merchants and enhancing convenience for consumers. The company commands a dominant 70% share of the APM market in Poland and is expanding across continental Europe and the UK. |
Logistics Poland Automation Expansion Market Share | |
| 2025 Q1 |
ChinaChina market continued rally from last year, supported by monetary easing and fiscal policies. DeepSeek's R1 AI model release marked significant technological milestone, with major companies like Tencent and Baidu integrating AI models into services, creating optimism about improved earnings in consumer digital services. |
AI Monetary Policy Consumer Digital Technology Fiscal Policy |
BrazilBrazilian market outperformed despite substantial interest rate hikes, thanks to better-than-expected performance of agricultural and mining exporters. Domestic demand was unexpectedly resilient, and passage of long-awaited consumption tax reform in January helped improve sentiment. |
Agriculture Mining Tax Reform Interest Rates Domestic Demand | |
PolandPoland overweight benefited as the quarter's best-performing emerging market currency. Polish logistics company InPost position was added to during the quarter, and Dino Polska performed well with solid fourth quarter results underpinned by robust consumer demand and effective cost management. |
Currency Logistics Consumer Demand Retail Cost Management |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 29, 2025 | Fund Letters | Damian Bird | INP | InPost SA | Materials | Logistics & Parcel Delivery | Bull | - | Apm, e-commerce, efficiency, expansion, FCF, Logistics, Margins, Sustainability | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | HUGEL | Hugel Inc. | Health Care | Medical Aesthetics | Bull | - | Aesthetics, Botox, Brand, FDA approval, Fillers, global expansion, Margins | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | DNP | Dino Polska S.A. | Consumer Staples | Food & Staples Retailing | Bull | NYSE | growth, Margins, market share, resilience, retail, supermarkets, vertical integration | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | ACCT | Accton Technology Corp. | Information Technology | Networking Equipment | Bull | NYSE | AI infrastructure, Bandwidth, data centers, growth, hyperscalers, Margins, Networking | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | DNP | Dino Polska S.A. | Consumer Staples | Food & Staples Retailing | Bull | NYSE | growth, Margins, market share, resilience, retail, supermarkets, vertical integration | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | INP | InPost SA | Materials | Logistics & Parcel Delivery | Bull | - | Apm, e-commerce, efficiency, expansion, FCF, Logistics, Margins, Sustainability | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | CATL | Contemporary Amperex Technology Co. Ltd. | Other | Electric Vehicle Battery Manufacturing | Bull | Shanghai Stock Exchange | energy storage, Ev batteries, growth, innovation, Margins, policy support, R&D | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | CATL | Contemporary Amperex Technology Co. Ltd. | Other | Electric Vehicle Battery Manufacturing | Bull | Shanghai Stock Exchange | energy storage, Ev batteries, growth, innovation, Margins, policy support, R&D | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | HUGEL | Hugel Inc. | Health Care | Medical Aesthetics | Bull | - | Aesthetics, Botox, Brand, FDA approval, Fillers, global expansion, Margins | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | PROS | Prosus N.V. | Other | Internet & Digital Media | Bull | Euronext Stock Exchange | buybacks, Emerging markets, Fintech, growth, Internet, NAV discount, Tencent | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | PROS | Prosus N.V. | Other | Internet & Digital Media | Bull | Euronext Stock Exchange | buybacks, Emerging markets, Fintech, growth, Internet, NAV discount, Tencent | Login |
| Oct 29, 2025 | Fund Letters | Damian Bird | ACCT | Accton Technology Corp. | Information Technology | Networking Equipment | Bull | NYSE | AI infrastructure, Bandwidth, data centers, growth, hyperscalers, Margins, Networking | Login |
| Sep 30, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | INPST.WA | InPost | Industrials | Air Freight & Logistics | Bull | Warsaw Stock Exchange | Automated Parcel Machines, e-commerce, European expansion, Last-mile Delivery, Logistics, market leader, Poland, turnaround | Login |
| Sep 30, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | 2345.TW | Accton | Information Technology | Technology Hardware, Storage & Peripherals | Bull | Taiwan Stock Exchange | AI accelerators, AI infrastructure, data centers, growth, networking equipment, semiconductors, Taiwan, technology hardware | Login |
| Sep 30, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | 300750.SZ | CATL | Information Technology | Electronic Equipment, Instruments & Components | Bull | Shenzhen Stock Exchange | battery technology, China, Electric Vehicles, energy storage, EV Battery, growth, manufacturing, market leader | Login |
| Sep 30, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | DNP.WA | Dino Polska | Consumer Staples | Food & Staples Retailing | Bull | Warsaw Stock Exchange | consumer staples, grocery retail, Poland, Regional Products, retail, Rural Markets, store expansion, vertical integration | Login |
| Sep 30, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | 145020.KS | Hugel | Health Care | Biotechnology | Bull | Korea Exchange | biotechnology, Botulinum Toxin, healthcare, international expansion, market leader, medical aesthetics, Regulatory Approval, South Korea | Login |
| Sep 30, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | PRX.AS | Prosus | Communication Services | Interactive Media & Services | Bull | Euronext Amsterdam | advertising, China, Gaming, Internet, NAV discount, Share Buyback, social media, Tencent Proxy | Login |
| Jul 24, 2025 | Fund Letters | Damian Bird | TME | Tencent Music Entertainment Group | Communication Services | Movies & Entertainment | Bull | New York Stock Exchange | China, Margins, Music, platform, Streaming | Login |
| Jul 24, 2025 | Fund Letters | Damian Bird | BABA | Alibaba Group Holding Limited | Consumer Discretionary | Broadline Retail | Bear | New York Stock Exchange | China, cloud, Competition, ecommerce, Reinvestment | Login |
| Jul 24, 2025 | Fund Letters | Damian Bird | DLO | dLocal Limited | Financials | Transaction & Payment Processing Services | Bull | NASDAQ | Crossborder, emergingmarkets, Fintech, growth, Payments | Login |
| Jul 24, 2025 | Fund Letters | Damian Bird | WIZZ LN | Wizz Air Holdings Plc | Industrials | Airlines | Bull | New York Stock Exchange | Airlines, Europe, leverage, recovery, ULCC | Login |
| Jul 24, 2025 | Fund Letters | Damian Bird | PDD | PDD Holdings Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | China, discount, ecommerce, Temu, valuation | Login |
| Jul 24, 2025 | Fund Letters | Damian Bird | 8069 TT | E Ink Holdings Inc. | Information Technology | Electronic Components | Bull | New York Stock Exchange | Components, Display, Epaper, retail, Structuralgrowth | Login |
| Mar 1, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | TME | Tencent Music Entertainment | Communication Services | Interactive Media & Services | Bull | NYSE | cash generation, Chinese Consumer, Digital Entertainment, growth, market leader, Music streaming, SaaS | Login |
| Mar 1, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | DLO | dLocal | Information Technology | Data Processing & Outsourced Services | Bull | NASDAQ | Alternative Payments, digital payments, Emerging markets, Fintech, growth, Latin America, Payments processing | Login |
| Mar 1, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | DNP.WA | Dino Polska | Consumer Staples | Food & Staples Retailing | Bull | Warsaw Stock Exchange | Defensive growth, European Consumer, grocery retail, Poland, Rural Markets, store expansion, vertical integration | Login |
| Mar 1, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | LVS | Las Vegas Sands | Consumer Discretionary | Casinos & Gaming | Bull | NYSE | Chinese Consumer, Cyclical, dividend, Gaming, Macau, Singapore, Tourism Recovery, Value | Login |
| Mar 1, 2025 | Fund Letters | Polen Capital - Emerging Markets Growth | TOTS3.SA | Totvs | Information Technology | Application Software | Bull | B3 | Brazil, cross-selling, Digital transformation, ERP, market leader, SaaS, SME Software | Login |
| TICKER | COMMENTARY |
|---|---|
| 300750.SZ | CATL, the world's largest EV battery manufacturer, saw sequentially improving revenue growth and expanding margins lift quarterly profit growth to over 30% in a continuation of its strong performance this year. This has been driven by strong demand for its next-generation battery technologies. Flagship products such as the Shenxing Superfast Charging Battery and the Qilin Battery saw accelerated adoption and are set to be integrated into 67 cars this year in China. Together, these products accounted for nearly 40% of CATL's EV battery shipments this year, with expectations for that to rise again in 2026. CATL also benefitted from China's newly announced energy storage (ESS) roadmap, which aims to install over 180 GW of capacity by 2027, further boosting sentiment around its energy storage segment. With gross margins reaching their highest level in three years and continued leadership in both EV and ESS markets, we believe CATL remains well-positioned for sustained profitability and innovation-led growth. |
| PRX.AS | Prosus, owner of just under a quarter of Chinese social media and gaming company Tencent, had a strong quarter on the back of Tencent's continued improving operating momentum. Recent results were driven by an ongoing rebound in domestic games growth and strong advertising growth, a function of increasing ad load penetration of its Video accounts. This is still well below peers, and we believe this will continue to drive growth for years to come. Prosus was also buoyed by its ongoing share buyback programme that aims to close the NAV discount between its share price and its Tencent share holding. |
| 2345.TW | Accton, based in Taiwan, is a leading global manufacturer of network switches, other networking equipment, and more recently, a module assembler for AI accelerators. Accton makes critical physical hardware that enables data to travel in, out, and across data centers in the most efficient possible manner. The company benefited from surging global demand for AI infrastructure, which has driven exceptional earnings growth; revenues and income have more than double this year. The evolving market structure to more direct relationships with end customers only seems to be strengthening Accton's strategic positioning and competitive strengths. Despite its strong performance, the company's valuation remains undemanding. With the relentless need for faster, more efficient data centers, we believe Accton is well-placed to deliver many years of compound growth and attractive shareholder returns. |
| 2330.TW | The top contributors to absolute returns were CATL, TSMC, and Prosus. |
| INPST.WA | InPost is a Polish logistics company that pioneered the operation of Automated Parcel Machines (APMs) for e-commerce platforms. These machines offer a compelling value proposition: they reduce costs and complexity for merchants, enhance convenience and flexibility for consumers, and help governments and communities by lowering emissions and easing urban congestion. InPost commands a dominant 70% share of the APM market in its domestic market of Poland and is actively expanding overseas across continental Europe and the UK. While recent earnings growth turned negative as it digested a large acquisition of a loss-making logistics company in the UK, we view this as a temporary integration headwind. The strategic shift from traditional to-door delivery to APMs should unlock significant efficiencies and margin improvement. With e-commerce penetration growing, APM penetration increasing, and new market entries underway, we believe InPost is well-positioned for a multi-year growth trajectory. Meanwhile its margins, returns on capital, and free cashflow should normalize over the next three quarters, setting the stage for renewed expansion and long-term shareholder value creation. |
| 145020.KS | Hugel is a medical aesthetics company and the South Korean leader in botulinum toxin and hyaluronic acid fillers used for facial contouring. The botulinum toxin market, which accounts for 54% of sales, has historically been highly concentrated globally. While the domestic landscape is more fragmented, Hugel has maintained its leadership position for the last nine consecutive years. Following a period of extremely strong performance, the company's most recent quarterly net profit modestly undershot expectations, prompting a period of share price consolidation. However, Hugel's attractive valuation, cost-efficient production, and consistent track record of execution present a compelling investment case. Looking ahead, new regulatory approvals in the U.S. are expected to accelerate Hugel's international expansion, reinforcing its growth trajectory and enhancing its global competitiveness. |
| DNP.WA | Dino Polska is a leading operator of supermarkets in Poland. Its focus on rural areas, vertical integration, and low-cost regional products have enabled it to carve out a formidable niche for itself in the highly competitive Polish grocery retail sector. Following a period of strong share price appreciation, the stock underwent a phase of consolidation during the quarter. Nonetheless, beyond a slight miss to the second quarter's earnings expectations, the company's fundamentals remain solid, supported by resilient consumer demand, an accelerating pace of store expansion, and disciplined cost management. Looking ahead, we remain constructive on Dino's long-term prospects, underpinned by its proven operating model and ability to effectively serve Poland's expanding rural population. |
| BABA | The largest detractors from relative performance were InPost, Alibaba (zero weight), and Tencent. |
| 0700.HK | The largest detractors from relative performance were InPost, Alibaba (zero weight), and Tencent. |
| WEG3.SA | We started positions in four new companies, leading Chinese battery producer CATL, Brazilian industrial motor business WEG, Indian hotel operator Indian Hotels, and Indian record label Saregama India. |
| IHCL.NS | We started positions in four new companies, leading Chinese battery producer CATL, Brazilian industrial motor business WEG, Indian hotel operator Indian Hotels, and Indian record label Saregama India. |
| SARE.NS | We started positions in four new companies, leading Chinese battery producer CATL, Brazilian industrial motor business WEG, Indian hotel operator Indian Hotels, and Indian record label Saregama India. |
| FMSAUBD.MX | We ended positions in another four holdings, Mexican conglomerate FEMSA, Indian investment bank Kotak Mahindra, Indian conglomerate Reliance Industries, and Indian IT services provider Infosys. |
| KOTAKBANK.NS | We ended positions in another four holdings, Mexican conglomerate FEMSA, Indian investment bank Kotak Mahindra, Indian conglomerate Reliance Industries, and Indian IT services provider Infosys. |
| RELIANCE.NS | We ended positions in another four holdings, Mexican conglomerate FEMSA, Indian investment bank Kotak Mahindra, Indian conglomerate Reliance Industries, and Indian IT services provider Infosys. |
| INFY | We ended positions in another four holdings, Mexican conglomerate FEMSA, Indian investment bank Kotak Mahindra, Indian conglomerate Reliance Industries, and Indian IT services provider Infosys. |
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