| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.76% | 6.33% | -12.03% |
The Polen Focus Growth Portfolio returned 6.33% net in Q2 2026 but lagged the Russell 1000 Growth Index's 16.74% return as the market rally remained narrow and concentrated in AI infrastructure beneficiaries, particularly semiconductors and memory businesses. The Portfolio lacked sufficient exposure to what the market rewarded while holding too much software, IT services, and healthcare—areas pressured by AI disruption concerns and lacking near-term momentum. Market structure has become increasingly important, with price momentum, thematic flows, and passive concentration reinforcing one another. The managers responded by redeploying capital from businesses with slowing growth (Accenture, Aon, Synopsys, Uber, Zoetis) into companies with stronger current momentum and visible demand tailwinds, including aerospace suppliers (ATI, GE Aerospace, Howmet), power infrastructure (GE Vernova), data center construction (EMCOR), and semiconductors (TSMC, added to NVIDIA). They acknowledge the Index has changed materially, with semiconductors now representing one-third of the benchmark. While maintaining conviction in long-term earnings power, they recognize the cost of patience has risen and are adapting to be more nimble while preserving their fundamental philosophy of owning competitively advantaged compounders.
Polen Focus Growth seeks to own competitively advantaged businesses capable of compounding earnings over time, but is adapting to a market environment where momentum, thematic flows, and near-term business acceleration have become increasingly important determinants of performance, requiring greater nimbleness in capital allocation while preserving fundamental research discipline.
The managers acknowledge the market has changed significantly, with the Index increasingly concentrated in AI infrastructure beneficiaries and market structure favoring momentum and thematic flows. They are adapting by being more nimble while preserving their fundamental investment philosophy. They remain confident in the long-term earnings power of the Portfolio but recognize that confidence alone is not a portfolio management strategy. The tone reflects pragmatic adaptation to a challenging environment where the cost of patience has risen, while maintaining conviction that they can identify structurally advantaged businesses in both obvious places like AI infrastructure and less obvious areas like aerospace and power equipment where industry structure and supply-demand dynamics support durable growth.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 28 2026 | 2026 Q2 | ACN, AON, ATI, CSGP, EME, GE, GEV, HWM, LLY, LRCX, NVDA, SNPS, TSM, UBER, ZTS | aerospace, AI, Data centers, growth, large cap, momentum, Power Equipment, semiconductors |
LRCX CSGP ATI EME GE GEV HWM TSM NVDA |
Polen Focus Growth lagged in Q2 2026 as the market rewarded AI infrastructure momentum while penalizing software and healthcare holdings. The managers pivoted aggressively, selling slower-growth positions to fund aerospace, power equipment, data centers, and semiconductor investments where they see structural advantages meeting strong current demand. They're adapting to a momentum-driven market while maintaining their focus on competitively advantaged businesses capable of compounding long-term earnings. |
| Apr 23 2026 | 2026 Q1 | ABT, ADBE, BSX, CSGP, INTU, LRCX, META, MSFT, NOW, NVDA, PAYC, ROL, SBUX | AI, disruption, growth, semiconductors, software, technology, volatility |
LRCX META ROL CSGP |
Polen Focus Growth managers view Q1's 17% decline as creating attractive buying opportunities in mission-critical software companies unfairly punished by AI disruption fears. They consolidated around highest conviction names like ServiceNow and CoStar Group while adding semiconductor exposure through Lam Research. Portfolio trades at discount to index despite mid-teens expected earnings growth. |
| Jan 12 2026 | 2025 Q4 | AAPL, ABT, AMZN, GOOGL, ISRG, LLY, META, MSFT, NFLX, NOW, ORCL, SHOP, WDAY, ZTS | AI, Concentration, growth, healthcare, large cap, Quality, software |
LLY ORCL ISRG WDAY NFLX |
Polen Focus Growth underperformed in Q4 as quality factors lagged in a high-beta market. The managers worry about dangerous index concentration in 10 trillion-dollar stocks and diversify beyond AI themes. They initiated robotic surgery leader Intuitive Surgical while exiting Netflix and Workday. Despite Oracle's OpenAI-related volatility, they expect continued datacenter investment and potential market broadening to favor their diversified approach. |
| Oct 9 2025 | 2025 Q3 | AAPL, ACN, ADBE, AMZN, AVGO, BSX, CSGP, GOOGL, IT, META, MSFT, NFLX, NOW, NVDA, ORCL, SBUX, SHOP.TO, TMO, TSLA, V | AI, Cloud, growth, healthcare, large cap, Quality, semiconductors, technology |
NVDA AVGO INTU BSX SNPS UBER |
Polen Focus Growth underperformed in Q3 as AI enthusiasm drove risk-on markets favoring high-beta growth over quality. Oracle was top contributor on cloud acceleration while underweight Magnificent 7 positions hurt. Team initiated NVIDIA and Broadcom positions after concluding AI buildout will persist. Despite quality headwinds, maintains conviction in durable businesses for mid-teens long-term growth. |
| Jul 15 2025 | 2025 Q2 | AAPL, ADBE, AMZN, AVGO, CSGP, IDXX, MSFT, NFLX, NOW, NVDA, ORCL, SBUX, SHOP, TMO, UNH | AI, growth, healthcare, large cap, Quality, risk management, technology |
ORCL IDXX AAPL UNH ORCL IDXX |
Polen Focus Growth underperformed in Q2's AI-driven rally due to zero semiconductor exposure and healthcare weakness, but managers capitalized on Q1 volatility to add quality positions at attractive valuations. Oracle led performance with 56% gains from AI infrastructure positioning. The portfolio remains fully invested in competitively advantaged businesses targeting mid-teens earnings growth through disciplined quality-focused investing. |
| Apr 14 2025 | 2025 Q1 | AAPL, ABT, ACN, AMZN, AON, CMG, GOOGL, IT, LLY, META, NFLX, NOW, NVDA, NVO, ORCL, SBUX, TSLA, V, ZTS | AI, growth, healthcare, large cap, Quality, Resilience, technology, Trade Policy |
SBUX AON |
Polen Focus Growth outperformed during Q1 2025's tariff-driven volatility, returning -6.1% versus Russell 1000 Growth's -10.0%. The firm shifted toward safety-oriented holdings, initiating Starbucks and Aon positions while exiting Novo Nordisk. Their focus on software/services companies with pricing power provided resilience against trade policy disruption. Management remains optimistic about long-term positioning despite near-term uncertainty. |
| Jan 16 2025 | 2024 Q4 | AAPL, ADBE, AMZN, AVGO, CSGP, GOOGL, IT, LLY, META, MSFT, NFLX, NOW, NVDA, ORCL, SHOP, TMO, TSLA, UNH, ZTS | AI, Cloud, Concentration, E-Commerce, growth, large cap, technology, Valuations | - | Polen Focus Growth delivered solid Q4 performance while maintaining discipline amid a frothy market dominated by Magnificent 7 concentration. The fund added quality names like CoStar Group and trimmed overvalued positions. With Russell 1000 Growth at historic valuations driven more by multiple expansion than earnings, the manager expects their durable growth approach to outperform over time. |
| Oct 23 2024 | 2024 Q3 | AAPL, ABNB, ACN, ADBE, AMZN, CRM, GOOGL, MSCI, MSFT, NKE, NOW, NVDA, ORCL, PAYC, SHOP, TMO, TSLA, UNH, WDAY | AI, Cloud, growth, large cap, software, technology |
AAPL ORCL SHOP.TO ABNB |
Polen Capital's Focus Growth outperformed in Q3 despite market volatility, adding Apple and Oracle while exiting Nike and Salesforce. The fund targets mid-teens earnings growth through durable businesses with competitive advantages, expecting continued volatility but remaining confident in their concentrated portfolio's ability to compound through economic cycles. |
| Jul 16 2024 | 2024 Q2 | AAPL, ABBY, ACN, ADSK, ALGN, AMZN, CRM, GOOG, HD, META, MSCI, MSFT, NFLX, NVDA, SPOT | - | - | |
| May 9 2024 | 2024 Q1 | AAPL, ABT, ADBE, AMZN, META, MSFT, NFLX, NKE, NOW, NVDA, PAYC, PYPL, TMO, TSLA, V, ZTS | AI, earnings, growth, large cap, Quality, technology, Valuations | - | Polen Capital's Focus Growth strategy underperformed in Q1 2024 primarily due to not owning NVIDIA, which drove index returns. Managers trimmed AI-inflated names like Adobe and ServiceNow while adding to undervalued quality companies. They express concern about rising valuations but remain focused on consistent mid-teens earnings growth from predictable, competitively advantaged businesses rather than cyclical AI plays. |
| Dec 1 2024 | 2023 Q4 | AAPL, ABNB, ALGN, AMZN, CRM, DOCU, GOOGL, ILMN, META, MSFT, NFLX, NOW, NVDA, PYPL | AI, Cloud, earnings, growth, large cap, Streaming, technology |
AAPL|MSFT|NFLX|NVDA|UNH AIR FP|ICLR|LIN|MRVL|NOW|TSM CRM AMZN AAPL|MSFT|NFLX|NVDA|UNH ABNB |
Polen Focus Growth delivered 38.99% net returns in 2023, its second-best year ever, driven by strong earnings growth from Netflix, ServiceNow, and Amazon. The manager eliminated Illumina and trimmed Netflix while adding to Microsoft. Looking ahead, expects mid-teens earnings growth as policy-driven returns fade and fundamental factors become the primary return driver. |
| Oct 26 2022 | 2022 Q3 | ADBE, ILMN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIThe letter describes AI infrastructure as the dominant market theme, with semiconductors and memory businesses delivering exceptional returns driven by supply bottlenecks, accelerating compute demand, and capital intensity for generative and agentic AI. The managers acknowledge the demand for AI infrastructure is real and hyperscaler capital spending is extraordinary, but emphasize the need to distinguish between structurally advantaged businesses and those experiencing temporary cyclical scarcity. |
Semiconductors Memory Data Centers GPUs |
SemiconductorsSemiconductors now represent roughly one-third of the Russell 1000 Growth Index following reconstitution, making semiconductor exposure one of the largest determinants of relative performance. The managers added positions in NVIDIA, TSMC, and Lam Research, viewing them as competitively advantaged businesses with strong earnings power. They note the industry remains cyclical but see technology leadership and exposure to AI supply-chain bottlenecks as key advantages. |
Memory Foundries Semi Equipment GPUs | |
AerospaceThe managers initiated positions in GE Aerospace, Howmet Aerospace, and ATI Inc., viewing aerospace as an area where industry structure, scarcity value, and end-market demand have improved significantly. They highlight structural supply chain constraints, long-duration backlogs, dominant market positions, and the shift toward high-margin aftermarket services. The aerospace supply chain is described as structurally constrained with limited capacity additions while demand from commercial aerospace should remain strong for many years. |
Defense Components Aerospace Components Air Travel | |
Data CentersData center construction is highlighted as a critical bottleneck in the AI infrastructure buildout. The managers initiated a position in EMCOR Group, noting that demand for mechanical, electrical, and plumbing services is outstripping supply, driven by AI infrastructure spending, reshoring, semiconductor fab construction, and tax incentives. EMCOR's scale and ability to attract scarce skilled labor are viewed as competitive advantages in a capacity-constrained industry. |
AI Construction Infrastructure Spending | |
Power EquipmentThe managers initiated a position in GE Vernova, describing the demand environment for power infrastructure as materially changed over the past three years, driven by data center growth, AI infrastructure, electrification, reshoring, and grid modernization. GE Vernova is positioned as one of the few global companies capable of supplying power generation equipment to meet rising electricity demand, with a long runway of demand, improving profitability, and meaningful operating leverage. |
Energy Transition Grid Upgrade Industrial Machinery | |
MomentumMarket structure has become increasingly important, with price momentum, thematic flows, passive index concentration, and short-term trading reinforcing one another. Businesses associated with favored themes attract capital because their stocks are rising, while companies without thematic associations remain stuck in the penalty box longer than fundamentals suggest. The managers acknowledge the cost of being overly patient has risen and they are working to be more nimble while preserving their fundamental research discipline. |
Market Structure Passive Flows Thematic Investing | |
Enterprise SoftwareSoftware and IT services businesses continued to lag during the quarter, pressured by concerns that generative AI could disrupt existing business models, compress pricing power, or change the future value of traditional systems of record and workflow tools. The managers sold positions in Accenture and Synopsys where growth has been modest or below expectations, though they believe many of the market's concerns are overstated and long-term competitive positions remain strong. |
SaaS IT Services Cloud | |
| 2026 Q1 |
AIManagers believe AI disruption fears are excessive for their mission-critical enterprise software holdings. They view generative AI as probabilistic and error-prone, limiting its suitability for high-precision business operations, while their embedded software companies can add AI agents more easily than AI can displace them. |
Generative AI Enterprise Software Mission Critical Disruption Agentic Systems |
Enterprise SoftwarePortfolio concentrated around software names where AI disruption concerns are viewed as excessive. Managers believe their holdings like ServiceNow, Shopify, and CoStar have deep moats, are heavily embedded in customer workflows, and should benefit from AI as a tailwind rather than face disruption. |
SaaS Mission Critical Embedded Systems Competitive Moats Customer Retention | |
SemiconductorsIncreased exposure to semiconductor supply chain through new Lam Research position. NVIDIA delivered strong results with 70% revenue growth but market showed disinterest, illustrating disconnect between fundamentals and sentiment in the space. |
Semi Equipment Memory Cycle Data Centers AI Infrastructure | |
| 2025 Q4 |
PharmaceuticalsHealth care holdings including pharmaceutical and biotechnology companies added meaningfully to returns. Holdings such as Roche, Novartis, and Ionis Pharmaceuticals benefited from new drug approvals, steady and growing earnings, and business models that continue to generate cash through a wide range of economic conditions. |
Pharmaceuticals Biotechnology Healthcare |
Defense SpendingDefense-related holdings such as BAE Systems and Rheinmetall had been standout performers for much of the year but fell back in Q4. While these businesses currently benefit from secular growth in defense spending around the world, share prices have moved ahead of underlying fundamentals, prompting modest trimming. |
Defense Military Aerospace | |
AIMarket enthusiasm has led to high valuations across most asset categories, particularly US equities, with excitement around artificial intelligence and its ability to dramatically impact productivity driving much of the exuberance. However, the manager notes that even the most profound technological revolutions aren't one-way streets to prosperity. |
Artificial Intelligence Technology Productivity | |
ValueThe gap in valuation between US and non-US equities remains quite significant and should serve the funds well going forward given their non-US-centric postures. The manager believes their funds remain well positioned in financially sound enterprises where company stock prices are more than collateralized by underlying intrinsic value. |
Value Investing Valuation Intrinsic Value | |
| 2025 Q3 |
AIGenerative AI was the dominant theme driving Q3 performance, with semiconductors as the primary driver. The hyperscalers are announcing massive increases to AI-related spending, confirming capex spigots are wide open as they struggle to keep up with voracious demand. Oracle's quarterly results showed remaining performance obligations increasing 359% to $455 billion in one quarter, highlighting extraordinary demand for cloud computing and AI infrastructure. |
Generative AI Semiconductors Cloud Infrastructure Hyperscalers AI Chips |
CloudCloud infrastructure providers are seeing extraordinary demand acceleration. Oracle showed massive growth in cloud infrastructure services with contracted future cloud revenues surging. The team believes most long-term value from generative AI will accrue to cloud infrastructure providers and select software companies. Technology capex and AI-related spending are outpacing consumer spending contribution despite much smaller share of total economy. |
Cloud Infrastructure Oracle Microsoft Amazon Cloud Services | |
SemiconductorsNVIDIA produces the fastest chips for AI training models and receives 90% of every dollar spent on AI accelerated semiconductors. Broadcom is the number one provider of custom chips, receiving the majority of the remaining 10%. As Gen AI use cases mature and inference workloads become bigger, custom chips will account for larger market share. Both companies expected to generate ~20% earnings growth over next 3-5 years. |
NVIDIA Broadcom AI Chips Custom Chips Semiconductor Demand | |
QualityThe persistent risk-on market behavior has meant high-beta growth companies dominated returns while quality and low-volatility stocks lagged meaningfully. Despite headwinds to their quality-driven approach, the team maintains conviction that emphasis on quality will be rewarded across the full market cycle, just as it has been for almost four decades. They focus on businesses with high recurring revenues, high margins, high switching barriers and wide competitive moats. |
Quality Investing High Margins Recurring Revenues Competitive Moats Market Cycles | |
| 2025 Q2 |
AIAI re-emerged as the dominant narrative driving much of the market's leadership in Q2. Oracle was the top-owned relative contributor, up 56% in the quarter as the market embraced meaningful acceleration in growth driven by Oracle Cloud Infrastructure positioning as a go-to cloud infrastructure provider for training generative AI models. Performance leadership was dominated by AI-focused sectors, especially semiconductors which were up 64% in Q2. |
Cloud Infrastructure Semiconductors Oracle Training Models |
QualityThe managers emphasize their focus on high-quality growth businesses with durable competitive advantages and financial superiority. They construct the portfolio around a spectrum of high-quality growth businesses, from stable compounders delivering steady double-digit earnings growth to open-ended growth businesses attacking large expanding addressable markets. This quality orientation has been a headwind in the current risk-on environment but provides resilience for long-term compounding. |
Competitive Advantages Compounders Resilience Financial Superior Earnings Growth | |
GrowthThe portfolio targets mid-teens earnings growth from competitively advantaged businesses positioned for sustained growth. The managers seek companies across a growth spectrum, from stable compounders to open-ended growth businesses attacking large expanding addressable markets. They expect the portfolio companies to drive mid-teens or better earnings growth over the long term. |
Mid-teens Growth Addressable Markets Long-term Compounding Earnings | |
Risk AppetiteMarket sentiment shifted dramatically from extreme risk-off in Q1 to the exact opposite in Q2, characterized by a historic V-shaped recovery with increasing speculation and risk appetite. Higher-risk managers outperformed after lagging in the prior quarter, illustrating unusually rapid shifts in market dynamics. The market embraced pro-growth policies while minimizing tariff-related and valuation headwinds. |
Risk-on Speculation V-shaped Recovery Market Dynamics Pro-growth | |
| 2025 Q1 |
AIThe AI infrastructure narrative dominated headlines and powered much of the Russell 1000 Growth Index's 90% two-year return. However, semiconductors—the most visible AI beneficiary—declined 19% in Q1 2025 as the bloom came off the AI rose. Polen has no exposure to semiconductor companies and views Oracle's AI exposure as minimal. |
Infrastructure Semiconductors Narrative Hype Buildout |
Trade PolicyTrump administration tariffs disrupted global trade overnight, sparking inflation concerns and weakening consumer confidence. Polen anticipates minimal direct impact due to their software- and services-oriented holdings, but expects second-order effects from reduced consumer and business confidence to affect demand across most companies. |
Tariffs Inflation Consumer Confidence Global Trade Policy | |
ResiliencePolen emphasizes the Portfolio's resilience through software- and services-oriented companies with attractive pricing power, recurring revenues, and competitive advantages. This positioning helps mitigate direct tariff exposure while providing durability through uncertain economic environments and potential recession scenarios. |
Pricing Power Recurring Revenue Competitive Advantages Durability Quality | |
GLP1Polen exited Novo Nordisk after clinical trial data on next-generation GLP-1 drug CagriSema showed less differentiation from Eli Lilly's tirzepatide franchise than expected. The trial data slightly advantages Lilly versus Novo, prompting Polen to exit Novo and add proceeds to Eli Lilly position. |
Clinical Trials Drug Development Differentiation Efficacy Competition | |
| 2024 Q4 |
AIAmazon's AI business is described as a multi-billion-dollar business growing triple digits, 3x faster than AWS at the same stage. ServiceNow is integrating GenAI capabilities to drive increasing workflow efficiencies for customers. Broadcom's AI chip business is experiencing a demand surge with AI revenue opportunity projected to grow to $60-90B in 2027 from $12B in 2024. |
Artificial Intelligence Machine Learning GenAI AI Chips Workflow |
CloudAmazon Web Services continues to be a faster-growing, higher-margin segment driving margin expansion. Oracle's cloud infrastructure business enjoys large and durable advantages with strong demand for normal cloud workloads plus generative AI training and inference workloads. The cloud digitization trend is identified as a powerful tailwind for companies like Shopify. |
AWS Cloud Infrastructure SaaS Digital Transformation OCI | |
E-commerceShopify benefits from multiple powerful tailwinds including eCommerce growth, mobile commerce, social media integration, and seamless omnichannel experiences. Amazon's e-commerce business is seeing better fulfillment efficiency following significant investments. The direct-to-consumer trend is highlighted as a key driver for Shopify's growth. |
Digital Commerce Omnichannel Mobile Commerce DTC GMV | |
GLP1Eli Lilly's GLP-1 revenue growth was slightly below expectations but still showed excellent absolute growth levels. The appointment of RFK Jr. has weighed on sentiment due to his vocal criticism of GLP-1s and drug pricing, but the manager sees no potential policy change that would significantly reduce demand for GLP-1 drugs or Eli Lilly's revenue growth potential. |
Diabetes Weight Loss Pharmaceuticals Drug Pricing Healthcare Policy | |
StreamingNetflix continues to extend its lead over streaming competitors with 10% year-over-year subscriber growth in North America. The company is finding significant value in its content offering and has opportunities to scale the advertising-based video-on-demand segment, which should drive healthy double-digit earnings growth. |
Video Streaming Content Subscribers AVOD Entertainment | |
| 2024 Q3 |
AIAI is driving infrastructure spending from cloud providers and enterprises, with GenAI offerings becoming incremental growth drivers for software companies. Apple's iOS upgrade will bring GenAI advancements to the masses, potentially triggering a multi-year iPhone upgrade cycle. The fund believes AI is more likely to be a tailwind than headwind for competitively advantaged software businesses. |
GenAI Infrastructure Software iPhone Cloud |
CloudOracle's cloud infrastructure business is gaining traction with its differentiated approach of smaller datacenters that can act as public or private clouds. This is especially beneficial for regulated industries like banks and healthcare that require high data security and privacy. Oracle's Autonomous Database allows complicated workloads to move to the cloud more seamlessly. |
Infrastructure Database Security Enterprise Migration | |
E-commerceShopify reported strong results with 23% year-over-year GMV growth driven by same-store sales growth, new merchant growth, and omnichannel expansion. Shop Pay continues rolling out globally and should provide a tailwind for years. The company benefits from multiple powerful tailwinds including mobile commerce, social media, and digital payments. |
GMV Merchants Payments Mobile Omnichannel | |
| 2024 Q1 |
AIManagers discuss AI's impact across multiple holdings, noting that much customer spending is driven by AI experimentation rather than proven use cases. They see generative AI as having enormous future impact but question the sustainability of current revenue growth rates, particularly for NVIDIA. |
Generative AI GPU Datacenter Revenue Growth Experimentation |
CloudMicrosoft's Azure and related cloud offerings continue driving impressive growth despite the company's immense size. Cloud infrastructure represents a key growth driver for several portfolio holdings, with generative AI expected to provide additional tailwinds. |
Azure Cloud Infrastructure Microsoft Growth Driver Tailwinds | |
E-commerceAmazon remains the largest position with investment thesis based on solid earnings growth from e-commerce, AWS, and advertising businesses. The managers highlight disciplined expense management supporting robust margin expansion from 1.9% to roughly 8%. |
Amazon AWS Advertising Margin Expansion Largest Position | |
StreamingNetflix shows robust subscriber growth from new users and converting password borrowers into paying subscribers. The company remains the largest streaming company globally and the only profitable one the managers are aware of. |
Netflix Subscriber Growth Password Sharing Profitability Market Leader | |
| 2023 Q4 |
AIManager discusses generative AI as a major driver for cloud providers and Microsoft's business, but expresses caution about NVIDIA's valuation and cyclical nature. Sees AI as benefiting Azure, Microsoft's productivity suite, and creating new revenue streams through co-pilot features. |
Generative AI GPUs Cloud Microsoft NVIDIA |
CloudAmazon's AWS business experienced slowdown in 2023 as customers optimized spending, but stabilized in second half. Manager expects generative AI to contribute to growth recovery. Views cloud providers as having predictable revenue models from GPU investments. |
AWS Azure Cloud Infrastructure Amazon Microsoft | |
StreamingNetflix made meaningful progress monetizing shared passwords and introducing ad-supported tiers. Manager sees long-term revenue and free cash flow growth opportunities, though acknowledges low-hanging fruit may be picked. Trimmed position after strong performance. |
Netflix Streaming Advertising Monetization |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 28, 2026 | Fund Letters | Polen Capital - Focus Growth | LRCX | Lam Research | Semiconductor Equipment & Materials | Semiconductor Equipment | Bull | NASDAQ | Advanced Packaging, AI infrastructure, Cyclical, data center, Etch and deposition, High-Bandwidth Memory, Leading-Edge Logic, semiconductor equipment, technology leadership, Wafer Fabrication | Login |
| Jul 28, 2026 | Fund Letters | Polen Capital - Focus Growth | CSGP | CoStar Group | Real Estate Services | Real Estate Services | Bull | NASDAQ | Domain Expertise, High Growth, Homes.com, Margin recovery, proprietary data, Real Estate Data, Real Estate Services, Revenue Growth, SaaS, turnaround | Login |
| Jul 28, 2026 | Fund Letters | Polen Capital - Focus Growth | ATI | ATI Inc. | Metal Fabrication | Steel | Bull | New York Stock Exchange | Aerospace, Commercial Aerospace, Gas turbines, Jet Engine Components, Nickel-Based Alloys, oligopoly, Scarcity Value, specialty materials, Structural Growth, supply chain constraints | Login |
| Jul 28, 2026 | Fund Letters | Polen Capital - Focus Growth | EME | EMCOR Group | Engineering & Construction | Construction & Engineering | Bull | New York Stock Exchange | AI infrastructure, backlog growth, Capacity Constrained, CHIPS Act, Construction & Engineering, Data Center Construction, Reshoring, Semiconductor Fabs, Skilled labor, Specialty Contractor | Login |
| Jul 28, 2026 | Fund Letters | Polen Capital - Focus Growth | GE | GE Aerospace | Aerospace & Defense | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace & Defense, aftermarket services, Aircraft engines, Emerging markets, high-margin, Installed base, Mix shift, oligopoly, operating leverage, recurring revenue | Login |
| Jul 28, 2026 | Fund Letters | Polen Capital - Focus Growth | GEV | GE Vernova | Specialty Industrial Machinery | Electrical Components & Equipment | Bull | New York Stock Exchange | AI infrastructure, Data center infrastructure, electrical equipment, Electrification, Gas turbines, Grid modernization, operating leverage, Power generation, Reshoring, Supply Constrained | Login |
| Jul 28, 2026 | Fund Letters | Polen Capital - Focus Growth | HWM | Howmet Aerospace | Aerospace & Defense | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace & Defense, aftermarket, Aircraft engines, Customer Approvals, Dual Exposure, Engineered Components, Mission-Critical, oligopoly, supply chain, technical capabilities | Login |
| Jul 28, 2026 | Fund Letters | Polen Capital - Focus Growth | TSM | Taiwan Semiconductor Manufacturing Company | Semiconductors | Semiconductors | Bull | New York Stock Exchange | Advanced Packaging, AI infrastructure, fabless, high-performance computing, Leading-Edge Manufacturing, Monopoly, Pure-Play Foundry, secular growth, semiconductor foundry, Technology-Agnostic | Login |
| Jul 28, 2026 | Fund Letters | Polen Capital - Focus Growth | NVDA | NVIDIA | Semiconductors | Semiconductors | Bull | NASDAQ | AI infrastructure, Competitive advantages, CPUs, data center, Dominant Position, earnings growth, Ecosystem, GPUs, semiconductors, valuation compression | Login |
| Apr 23, 2026 | Fund Letters | Polen Capital - Focus Growth | LRCX | Lam Research Corporation | Semiconductor Equipment & Materials | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI infrastructure, datacenters, Deposition, Etch, Hardware, Memory, semiconductor equipment, software integration, Vendor Lock-in | Login |
| Apr 23, 2026 | Fund Letters | Polen Capital - Focus Growth | META | Meta Platforms Inc | Internet Content & Information | Interactive Media & Services | Bull | NASDAQ | AI monetization, Datacenter Capex, digital advertising, margin expansion, platform, Revenue Growth, social media, user base | Login |
| Apr 23, 2026 | Fund Letters | Polen Capital - Focus Growth | ROL | Rollins Inc | Personal Services | Commercial Services & Supplies | Bull | New York Stock Exchange | Acquisitions, customer retention, defensive, Fragmented Industry, Non-cyclical, Orkin, pest control, recurring revenue | Login |
| Apr 23, 2026 | Fund Letters | Polen Capital - Focus Growth | CSGP | CoStar Group Inc | Real Estate Services | Real Estate Services | Bull | NASDAQ | AI Resilient, commercial real estate, Domain Expertise, earnings growth, Homes.com, margin expansion, proprietary data, Real Estate Data | Login |
| Jan 12, 2026 | Fund Letters | Dan Davidowitz | LLY | Eli Lilly and Company | Health Care | Pharmaceuticals | Bull | New York Stock Exchange | Glp1, growth, innovation, pharmaceuticals, Pricing | Login |
| Jan 12, 2026 | Fund Letters | Dan Davidowitz | ORCL | Oracle Corporation | Information Technology | Application Software | Bull | New York Stock Exchange | AI, backlog, cloud, Execution, valuation | Login |
| Jan 12, 2026 | Fund Letters | Dan Davidowitz | ISRG | Intuitive Surgical, Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | innovation, Monopoly, Procedures, robotics, Surgery | Login |
| Jan 12, 2026 | Fund Letters | Dan Davidowitz | WDAY | Workday, Inc. | Information Technology | Application Software | Bear | NASDAQ | Deceleration, HCM, Maturity, Reallocation, Software | Login |
| Jan 12, 2026 | Fund Letters | Dan Davidowitz | NFLX | Netflix, Inc. | Communication Services | Movies & Entertainment | Bear | NASDAQ | acquisition, leverage, Regulation, Risk, Streaming | Login |
| Oct 9, 2025 | Fund Letters | Dan Davidowitz | NVDA | NVIDIA Corp. | Information Technology | Semiconductors | Bull | NASDAQ | AI accelerators, Ecosystem moat, FCF, hyperscaler capex, Networking | Login |
| Oct 9, 2025 | Fund Letters | Dan Davidowitz | AVGO | Broadcom Inc. | Information Technology | Semiconductors | Bull | NASDAQ | custom silicon, diversification, margin expansion, Networking, Pricing power | Login |
| Oct 9, 2025 | Fund Letters | Dan Davidowitz | INTU | Intuit Inc. | Information Technology | Application Software | Bull | NASDAQ | ARPU, Ecosystem, Fintech attach, Pricing power, SMB software | Login |
| Oct 9, 2025 | Fund Letters | Dan Davidowitz | BSX | Boston Scientific Corp. | Health Care | Medical Devices | Bull | NYSE | Cardio devices, Category leadership, FCF, Margins, Procedure adoption | Login |
| Oct 9, 2025 | Fund Letters | Dan Davidowitz | SNPS | Synopsys Inc. | Information Technology | Application Software | Bull | NASDAQ | Eda, margin expansion, Pricing power, Secular tailwind, switching costs | Login |
| Oct 9, 2025 | Fund Letters | Dan Davidowitz | UBER | Uber Technologies Inc. | Information Technology | Ground Transportation | Bull | NYSE | advertising, network effects, Regulatory, Subscriptions, Take rate | Login |
| Jul 15, 2025 | Fund Letters | Dan Davidowitz | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | New York Stock Exchange | cloud infrastructure, Digital transformation, Enterprise software, Omega AI, recurring revenue | Login |
| Jul 15, 2025 | Fund Letters | Dan Davidowitz | IDXX | IDEXX Laboratories, Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | Animal Health, diagnostics, recurring revenue, secular growth, Veterinary | Login |
| Jul 15, 2025 | Fund Letters | Dan Davidowitz | AAPL | Apple Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Bear | NASDAQ | AI, consumer electronics, Smartphones, supply chain, tariffs | Login |
| Jul 15, 2025 | Fund Letters | Dan Davidowitz | UNH | UnitedHealth Group Incorporated | Health Care | Managed Health Care | Bear | New York Stock Exchange | managed care, margin compression, Medical costs, Regulation, Reimbursement | Login |
| Jun 1, 2025 | Fund Letters | Polen Capital - Focus Growth | ORCL | Oracle Corporation | Software & Services | Systems Software | Bull | NASDAQ | AI training, cloud infrastructure, Database Migration, Enterprise software, growth, SaaS, technology | Login |
| Jun 1, 2025 | Fund Letters | Polen Capital - Focus Growth | IDXX | IDEXX Laboratories | Health Care Equipment & Services | Health Care Equipment | Bull | NASDAQ | Defensive growth, healthcare, market leader, Pet Diagnostics, Razor-Blade Model, recurring revenue, Veterinary | Login |
| Mar 1, 2025 | Fund Letters | Polen Capital - Focus Growth | SBUX | Starbucks Corporation | Consumer Discretionary | Restaurants | Bull | NASDAQ | Brand, Coffee, margin expansion, Operations, Restaurant, retail, Store Productivity, turnaround | Login |
| Mar 1, 2025 | Fund Letters | Polen Capital - Focus Growth | AON | Aon plc | Financials | Insurance Brokers | Bull | NYSE | Client Retention, defensive, Global, inflation hedge, insurance brokerage, professional services, recurring revenue, scale | Login |
| Sep 30, 2024 | Fund Letters | Polen Capital - Focus Growth | AAPL | Apple Inc. | Technology Hardware, Storage & Peripherals | Technology Hardware, Storage & Peripherals | Bull | NASDAQ | Artificial Intelligence, consumer electronics, GenAI, growth, iOS, iPhone, Smartphones, technology hardware | Login |
| Sep 30, 2024 | Fund Letters | Polen Capital - Focus Growth | ORCL | Oracle Corporation | Software | Systems Software | Bull | NYSE | Autonomous Database, cloud infrastructure, cybersecurity, Database Software, Enterprise software, Private Cloud, SaaS, Systems Software | Login |
| Sep 30, 2024 | Fund Letters | Polen Capital - Focus Growth | SHOP.TO | Shopify Inc. | Software | Application Software | Bull | TSX | Application Software, digital payments, DTC, e-commerce, Mobile Commerce, Omnichannel, platform, SaaS | Login |
| Sep 30, 2024 | Fund Letters | Polen Capital - Focus Growth | ABNB | Airbnb, Inc. | Consumer Services | Hotels, Restaurants & Leisure | Bull | NASDAQ | Accommodations, Consumer services, Leisure, marketplace, platform, Sharing Economy, Tourism, Travel | Login |
| Dec 31, 2023 | Fund Letters | Polen Capital - Focus Growth | AAPL|MSFT|NFLX|NVDA|UNH | Netflix Inc | Communication Services | Entertainment | Bull | NASDAQ | advertising, Content, digital media, entertainment, growth, SaaS, Streaming, Subscription, turnaround | Login |
| Dec 31, 2023 | Fund Letters | Polen Capital - Focus Growth | AIR FP|ICLR|LIN|MRVL|NOW|TSM | ServiceNow Inc | Information Technology | Systems Software | Bull | NYSE | Automation, Cloud computing, Digital transformation, Enterprise software, growth, SaaS, technology, Workflow | Login |
| Dec 31, 2023 | Fund Letters | Polen Capital - Focus Growth | CRM | Salesforce Inc | Information Technology | Application Software | Bull | NYSE | Cloud computing, CRM, Customer service, Enterprise software, margin expansion, operational efficiency, SaaS, Sales Automation | Login |
| Dec 31, 2023 | Fund Letters | Polen Capital - Focus Growth | AMZN | Amazon.com Inc | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Artificial Intelligence, AWS, Cloud computing, digital advertising, e-commerce, Free Cash Flow, Logistics, Operational Leverage | Login |
| Dec 31, 2023 | Fund Letters | Polen Capital - Focus Growth | AAPL|MSFT|NFLX|NVDA|UNH | Microsoft Corporation | Information Technology | Systems Software | Bull | NASDAQ | Artificial Intelligence, Azure, Cloud computing, Co-Pilot, Enterprise software, generative AI, LLM, productivity software, SaaS | Login |
| Dec 31, 2023 | Fund Letters | Polen Capital - Focus Growth | ABNB | Airbnb Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | growth, hospitality, marketplace, network effects, platform, Sharing Economy, Travel, Two-Sided Market | Login |
| TICKER | COMMENTARY |
|---|---|
| LRCX | Lam Research was the Portfolio's top-performing holding during the quarter as investors rewarded companies directly enabling the AI infrastructure buildout. Lam is a leading supplier of wafer fabrication equipment, with particular strength in etch and deposition—critical steps in producing increasingly complex semiconductors. The company reported record March-quarter revenue and earnings per share, supported by AI-driven demand. We believe Lam is well positioned to benefit from investment cycles in leading-edge logic, memory, high-bandwidth memory, advanced packaging, and data center-related capacity. While the industry remains cyclical, Lam's technology leadership and exposure to key AI supply-chain bottlenecks made it a clear beneficiary of the quarter's market environment. |
| CSGP | CoStar Group was again a meaningful detractor during the quarter as investors continued to focus on their elevated Homes.com investment, the timing of margin recovery, and the broader pressure on software and information-based businesses. This was frustrating for us, particularly after we added to the position in the first quarter, but our conviction remains intact. The business continues to perform well, with strong revenue growth, healthy bookings, improving profitability, and continued Homes.com momentum. We acknowledge the market's concern around the scale and duration of Homes.com spending, but believe CoStar's proprietary real estate data, deep domain expertise, and leading market positions are not easily replicated. In our view, the debate is less about business quality and more about how long investors are willing to wait for Homes.com to translate into more visible earnings power. We continue to believe this is temporary and expect CoStar to be one of, if not the fastest growing company in the Portfolio over the next 3 to 5 years based on earnings per share. |
| ATI | We initiated a new position in ATI Inc., a leading producer of specialty materials, including nickel-based alloys used in high-temperature jet engine components. While this may not sound like a traditional Focus Growth investment at first glance, we believe the world has changed meaningfully for ATI. The aerospace supply chain is structurally constrained, and ATI is one of only a very small number of companies capable of producing these materials at the required scale and quality. Our research suggests capacity additions appear limited, while demand from commercial aerospace and gas turbines should remain strong for many years. In our view, ATI is an example of a business that historically may have appeared more cyclical or commodity-like, but where industry structure, scarcity value, and end-market demand have improved significantly. |
| EME | We initiated a new position in EMCOR Group, the largest mechanical, electrical, and plumbing specialty contractor in the United States. EMCOR is diversified across end markets, but roughly half of its recent revenue growth, and an increasing portion of its backlog, has been tied to data center and semiconductor fab construction. Our analysis shows demand for EMCOR's services is outstripping supply, driven by AI infrastructure spending, reshoring of U.S. manufacturing, semiconductor fab construction supported by the CHIPS Act, and tax incentives for domestic infrastructure investment. We believe EMCOR represents a less obvious but critical bottleneck in the AI infrastructure buildout: the skilled labor, project management, and technical execution required to physically build data centers, fabs, and complex industrial facilities. EMCOR's scale and reputation also help it attract scarce foremen and management talent, which we view as an important competitive advantage in a capacity-constrained industry. |
| GE | We initiated a new position in GE Aerospace, which we view as one of the highest-quality industrial businesses in the world. Following the multi-year separation of the former GE conglomerate, investors can now own GE Aerospace as a standalone company focused almost entirely on aircraft engines and related services. GE commands a dominant position in commercial jet engines, operating in a global oligopoly alongside Safran, Rolls-Royce, and Pratt & Whitney. The company's engines power roughly three out of every four commercial flights globally, supported by an installed base of approximately 50,000 engines and a backlog of roughly $190 billion. The most attractive part of GE Aerospace's business, in our view, is the commercial engine services segment. Approximately 75% of GE's commercial segment revenue comes from servicing existing engines, creating a durable, high-margin revenue stream attached to long-duration assets. The structural shortage of new aircraft has forced airlines to extend the lives of existing fleets, which increases demand for aftermarket engine services. With research showing growth in air travel, particularly in emerging markets such as the Middle East and China, this should further support long-term demand. While there are risks, including customer concentration with Boeing and Airbus, supply chain constraints, geopolitical issues, and cyclicality in air travel, we believe GE Aerospace can potentially grow revenues at a double-digit annual rate with margin expansion supported by operating leverage and the mix shift toward services. |
| GEV | We initiated a new position in GE Vernova, one of the few global companies capable of supplying the power generation equipment needed to meet rising electricity demand. The demand environment for power infrastructure has changed materially in the past 3 years, driven by data center growth, AI infrastructure, electrification, reshoring, and the need to modernize aging grid infrastructure. We think GE Vernova is one of only a handful of companies globally that can meet this moment, particularly in gas turbines and related power equipment. We believe the company has a long runway of demand, improving profitability as a standalone company (similar to GE Aerospace, was previously the power business with the broader GE conglomerate), and meaningful operating leverage as revenue growth accelerates. As with our aerospace investments, this is not simply a thematic trade for us. We view this as a competitively advantaged business operating in an industry where supply is currently constrained and demand visibility has improved materially. |
| HWM | We initiated a new position in Howmet Aerospace, a critical supplier of highly engineered components for commercial aerospace engines. Howmet occupies an advantaged position in parts of the engine supply chain where there are very few companies with the technical capabilities, scale, and customer approvals required to compete. In certain mission-critical engine components, Howmet is one of only a small number of scaled suppliers, and in some cases effectively serves as the key provider capable of meeting industry demand. Importantly, Howmet can potentially benefit from both new aircraft production and aftermarket demand. Whether Boeing and Airbus improve production rates or airlines continue extending the life of existing aircraft, we believe Howmet should benefit from the need for more engine components over time. |
| TSM | Finally, we initiated a position in Taiwan Semiconductor Manufacturing Company (TSMC), the dominant pure semiconductor foundry globally. Most of the world's semiconductor companies design but don't manufacture chips. TSMC is the go-to manufacturer with decades of investment and experience. They produce thousands of different products using hundreds of different technologies for many different end markets. The vast majority of their sales are from leading edge manufacturing processes, which we think further distances the company from its peers who lack the resources to keep up with the increased complexity of chip production. TSMC is technology and customer agnostic, so it is the default supplier for almost all new chip technologies from whichever company designs those chips. While the company and most of its manufacturing is based in Taiwan, the vast majority of its sales are to US-based companies like NVIDIA, Apple, Amazon, Google, and Qualcomm. TSMC is the latest addition to the Portfolio in the semiconductor supply chain because we think each of these companies represent a monopoly or duopoly type business with long term secular growth in addition to the current strong AI cycle. |
| ACN | Turning to sales, we exited our long-held position in Accenture. We think Accenture remains an excellent business with strong competitive advantages, but revenue growth has been modest and below our expectations for roughly the past year as discretionary IT budgets remain under pressure. We believe the company can reaccelerate over time, particularly as enterprise customers move from AI experimentation to broader implementation. However, that transition is taking longer than we expected. In the current market environment, where timing and business momentum matter more than they have historically, we believe the opportunity cost of continuing to wait has increased. We used the proceeds to fund our new position in EMCOR, where we see stronger current business momentum and a more compelling near-term growth setup. |
| AON | We sold our position in Aon. In our view, Aon is a high-quality business and continues to execute well. However, our research shows that the property and casualty insurance market is beginning to soften, which may make future organic growth more difficult to come by. Insurance brokers can be attractive businesses, but when the underlying pricing environment deteriorates, growth can become more challenging and investor expectations can reset. Given the stronger business momentum we see in our new aerospace and power infrastructure investments, we believe redeploying capital from Aon was the right decision. |
| SNPS | We sold Synopsys to help fund an addition to NVIDIA. We view Synopsys as a competitively advantaged business with an important role in semiconductor design software, and we continue to respect the company's long-term position. However, its growth has been below our expectations, while its valuation remains well above the Portfolio's weighted average. Given the combination of slower-than-expected growth and a premium valuation, we saw a more compelling risk-reward opportunity in NVIDIA. |
| ZTS | We sold Zoetis. Zoetis remains the global leader in animal health and retains many of the characteristics we admire: strong brands, scale, recurring demand, and a long runway for innovation. However, the business has slowed due in part to competitive entry in dermatology, an important growth area for the company. We expect Zoetis to return to better growth over time, supported by a pipeline of new product launches, but we think that acceleration is unlikely to restore revenue growth to high-single-digit levels until late next year. We will continue to follow the company closely and would consider reinvesting if the acceleration becomes more visible. For now, we believe the capital is better deployed into businesses that we think have stronger current momentum, including ATI, GE Aerospace, and GE Vernova. |
| UBER | Lastly, we sold our position in Uber Technologies to fund the aforementioned TSMC purchase. While Uber is growing nicely, it is difficult to disprove the negative narrative on autonomous vehicle disruption so we decided to use the proceeds elsewhere. |
| NVDA | In terms of existing positions, we added to NVIDIA during the quarter as the valuation had meaningfully compressed, not because the business deteriorated, but because earnings have grown much faster than the share price. NVIDIA remains the dominant provider of data center graphics processing units (GPUs) and related systems, and we believe the company is also increasingly well positioned to gain share in data center central processing units (CPUs), which represents another large market opportunity. In a market rightly focused on the scale of AI infrastructure investment, we think NVIDIA remains one of the clearest beneficiaries, but importantly, it also has the competitive advantages, ecosystem, balance sheet, and earnings power that fit our investment criteria. We believe the stock offered an attractive opportunity to add to one of the world's most advantaged businesses at a more reasonable valuation. |
| LLY | Top relative contributors to the Portfolio's performance included Lam Research, Netflix (not owned), and Eli Lilly. |
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