Polen Capital - Global SMID Company Growth

Investor Summary

Polen Capital Management, LLC is led by Chief Executive Officer Stanley C. Moss, with Kevin Dolsen, CFA serving as Chief Operating Officer. The firm was founded in 1979 by David Polen and has been registered as an Investment Adviser with the United States Securities and Exchange Commission since April 1980. Following Polen's death in 2012, leadership transitioned to co-manager Damon Ficklin and CEO Stan Moss. The company is a Delaware-organized limited liability company under employee control with over 200 employees across global offices in Boca Raton, Boston, London, Abu Dhabi, and Hong Kong. The firm manages discretionary assets totaling $37,703,918,773 as of December 31, 2024.

Fund Strategy

Polen Capital's Global SMID Company Growth strategy seeks to achieve long-term growth by building a concentrated portfolio of outstanding global businesses with competitive advantages and the potential for sustained growth. The investment objective is to achieve long-term growth by building a concentrated portfolio of competitively advantaged global businesses with potential for sustainable, above-average earnings growth. The firm employs a bottom-up, fundamental research process and integrates sustainability factors as part of a comprehensive evaluation of a company's financial risks. They believe that earnings growth is the primary driver of long-term stock price appreciation and focus on identifying high quality growth companies that are able to deliver consistent above average growth in earnings. The investment characteristics include companies with growing earnings driven by solid franchises, strong balance sheets, experienced management teams and leading products/services.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
-	-5%	-5%

Executive Summary

Polen Capital's Global SMID Company Growth portfolio declined 4.84% gross in Q1 2025, underperforming the MSCI ACWI SMID Cap Index return of -1.71%. The quarter was marked by significant divergence between U.S. small caps, which fell 9.5%, and international small caps, which gained 0.6%. The portfolio's quality growth investment style lagged as value outperformed growth during the period. Top contributors included Sanrio, benefiting from Hello Kitty's 50th anniversary promotions and licensing growth, Goosehead Insurance with strong results and margin expansion, and new position Lottomatica, leveraging Italy's online gambling transition. Key detractors were Globant, facing disappointing guidance and Latin American weakness, e.l.f. Beauty, pressured by tariff concerns and industry slowdown, and Kalyan Jewellers, impacted by Indian small cap sell-off. The managers initiated positions in Lottomatica and Saia while exiting Axis Bank and government contractors Booz Allen Hamilton and Tetra Tech. Despite challenging macro conditions including tariff disputes, inflation, and geopolitical uncertainty, the team remains optimistic about portfolio companies and SMID valuations, focusing on resilient businesses that can execute across economic cycles.

Forward Outlook

Looking ahead to 2025 and beyond, we remain optimistic about our Portfolio companies and their relative outlooks, and we find the valuation for SMID stocks compelling. While global economic crosswinds are shifting rapidly and geopolitical uncertainty is creating a challenging environment for companies and investors, our focus remains on resilient businesses that can self-fund growth and execute across a range of economic backdrops.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 22 2025	2025 Q1	8136.T, AXSB.NS, BAH, ELF, GLOB, GSHD, KLYJ.NS, SAIA, TTEK	Beauty, gaming, global, growth, international, Quality, small caps, SMID Cap	8136.T GSHD LOTTO.MI GLOB ELF KLYJ.NS SAIA	Polen Capital's Global SMID portfolio fell 4.84% in Q1 2025, underperforming amid quality growth style headwinds. U.S. small caps declined sharply while international markets showed resilience. Top contributors Sanrio, Goosehead Insurance, and new position Lottomatica offset weakness in Globant, e.l.f. Beauty, and Kalyan Jewellers. Managers remain optimistic on resilient quality businesses despite macro uncertainty.
Jan 23 2025	2024 Q4	8112.T, ALIT, BLD, CWAN, ELF, EXLS, FEVR.L, FIVE, GSHD, KNSL, MPWR, PGNY, REVG, TECH, TME, TTEK	global, growth, Quality, SMID Cap, underperformance, volatility	-	Polen Capital's Global SMID strategy underperformed in Q3 2024 amid market volatility, returning 7.40% net versus 9.37% for the benchmark. The managers actively repositioned the portfolio, adding quality names like elf Beauty and Tetra Tech while maintaining conviction in their disciplined, long-term approach focused on competitively advantaged businesses with strong fundamentals.
Oct 18 2024	2024 Q3	8112.HK, ALIT, BLD, CWAN, ELF, EXLS, FEVR.L, FIVE, GSHD, KNSL, MPWR, PGNY, REVG, TECH, TME, TTEK	global, growth, portfolio, Quality, SMID Cap	-	Polen Capital's Global SMID strategy returned 7.4% in Q3 but underperformed amid market volatility. The team maintains conviction in their quality-focused approach, adding positions in elf Beauty, Exlservice, and Tetra Tech while trimming others. Despite near-term headwinds, they see significant long-term opportunity in high-quality SMID companies with competitive advantages and growth potential.
Jul 24 2024	2024 Q2	0700.HK, 4480.T, ALIT, BMBL, CWAN, DATA.L, DLO, FIVE, MPWR, PAYC, PGNY, PME.AX, RVLV, TECH	AI, global, healthcare, quality growth, semiconductors, SMID Cap, technology, volatility	TME PME.AX MPWR DLO PGNY ALIT DATA.L 4480.T	Polen Capital's Global SMID portfolio fell 8.90% in Q2 2024, underperforming due to market volatility and election uncertainty. Top performers included Tencent Music and Pro Medicus, while dLocal and Progyny detracted. The team added GlobalData and Medley, exited Bumble, and maintains focus on high-quality companies with competitive advantages despite near-term headwinds.
May 9 2024	2024 Q1	3697.T, 8069.TWO, CNM, CWAN, DAVA, EVD.L, FEVR.L, GLOB, JDG.L, PME.AX, REVG, TOI.TO, WIZZ.L	global, growth, infrastructure, IT Services, Quality, SMID Cap, software	TOI.TO EVD.DE CNM GLOB DAVA 3697.T	Polen Capital's Global SMID strategy underperformed in Q1 due to weak IT services holdings facing client spending pullbacks, while software and infrastructure names like Topicus.com and Core & Main delivered strong results. The team continues restructuring the portfolio and sees significant long-term opportunity in high-quality SMID companies with competitive advantages and reinvestment capabilities.
Feb 16 2024	2023 Q4	3697.T, AZPN, BMBL, CCCS, DLO, ETSY, EVD.DE, FIVE, FOXF, GNRC, MEDP, MKTX, MPWR, PAYC, POOL, TECH, TME, WRBY, XPEL, YUMC	consumer, global, growth, Quality, SMID Cap, software, technology	FIVE 3697.T EVD.DE XPEL PAYC CCCS	Polen Capital's Global SMID strategy underperformed in Q4 despite benefiting from rate optimism. Strong performance from Five Below's consumer resilience and Shift's AI-driven software testing growth was offset by weakness in Xpel and Paycom. Major strategy restructuring introduced team-based management and significant portfolio turnover. Focus remains on quality growth companies with long-term compounding potential.
Oct 19 2023	2023 Q3	0696.HK, ALIT, CCCS, DOXY, FIVE, GSHD, MORN, PGNY, XPEL, YETI	Automotive, global, growth, healthcare, insurance, SMID Cap, technology	GSHD YETI CCCS ALIT FIVE AMDOCS 0696.HK MORN PGNY XPEL	Polen Capital's Global SMID strategy underperformed in Q3 2023 due to security selection challenges amid macro uncertainty. Strong performance from insurance holdings Goosehead and CCC Intelligent Solutions was offset by weakness in Alight, Five Below, and Doximity. The manager actively repositioned the portfolio with six new positions and six exits, maintaining focus on long-term competitive advantages.
Oct 26 2022	2022 Q3	60N GR, AZTA, ENX GR, FIVE, PAYC, TEN	-	-

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 22 2025

2025 Q1

8136.T, AXSB.NS, BAH, ELF, GLOB, GSHD, KLYJ.NS, SAIA, TTEK

Beauty, gaming, global, growth, international, Quality, small caps, SMID Cap

8136.T
GSHD
LOTTO.MI
GLOB
ELF
KLYJ.NS
SAIA

Polen Capital's Global SMID portfolio fell 4.84% in Q1 2025, underperforming amid quality growth style headwinds. U.S. small caps declined sharply while international markets showed resilience. Top contributors Sanrio, Goosehead Insurance, and new position Lottomatica offset weakness in Globant, e.l.f. Beauty, and Kalyan Jewellers. Managers remain optimistic on resilient quality businesses despite macro uncertainty.

Jan 23 2025

2024 Q4

8112.T, ALIT, BLD, CWAN, ELF, EXLS, FEVR.L, FIVE, GSHD, KNSL, MPWR, PGNY, REVG, TECH, TME, TTEK

global, growth, Quality, SMID Cap, underperformance, volatility

Polen Capital's Global SMID strategy underperformed in Q3 2024 amid market volatility, returning 7.40% net versus 9.37% for the benchmark. The managers actively repositioned the portfolio, adding quality names like elf Beauty and Tetra Tech while maintaining conviction in their disciplined, long-term approach focused on competitively advantaged businesses with strong fundamentals.

Oct 18 2024

2024 Q3

8112.HK, ALIT, BLD, CWAN, ELF, EXLS, FEVR.L, FIVE, GSHD, KNSL, MPWR, PGNY, REVG, TECH, TME, TTEK

global, growth, portfolio, Quality, SMID Cap

Polen Capital's Global SMID strategy returned 7.4% in Q3 but underperformed amid market volatility. The team maintains conviction in their quality-focused approach, adding positions in elf Beauty, Exlservice, and Tetra Tech while trimming others. Despite near-term headwinds, they see significant long-term opportunity in high-quality SMID companies with competitive advantages and growth potential.

Jul 24 2024

2024 Q2

0700.HK, 4480.T, ALIT, BMBL, CWAN, DATA.L, DLO, FIVE, MPWR, PAYC, PGNY, PME.AX, RVLV, TECH

AI, global, healthcare, quality growth, semiconductors, SMID Cap, technology, volatility

TME
PME.AX
MPWR
DLO
PGNY
ALIT
DATA.L
4480.T

Polen Capital's Global SMID portfolio fell 8.90% in Q2 2024, underperforming due to market volatility and election uncertainty. Top performers included Tencent Music and Pro Medicus, while dLocal and Progyny detracted. The team added GlobalData and Medley, exited Bumble, and maintains focus on high-quality companies with competitive advantages despite near-term headwinds.

May 9 2024

2024 Q1

3697.T, 8069.TWO, CNM, CWAN, DAVA, EVD.L, FEVR.L, GLOB, JDG.L, PME.AX, REVG, TOI.TO, WIZZ.L

global, growth, infrastructure, IT Services, Quality, SMID Cap, software

TOI.TO
EVD.DE
CNM
GLOB
DAVA
3697.T

Polen Capital's Global SMID strategy underperformed in Q1 due to weak IT services holdings facing client spending pullbacks, while software and infrastructure names like Topicus.com and Core & Main delivered strong results. The team continues restructuring the portfolio and sees significant long-term opportunity in high-quality SMID companies with competitive advantages and reinvestment capabilities.

Feb 16 2024

2023 Q4

3697.T, AZPN, BMBL, CCCS, DLO, ETSY, EVD.DE, FIVE, FOXF, GNRC, MEDP, MKTX, MPWR, PAYC, POOL, TECH, TME, WRBY, XPEL, YUMC

consumer, global, growth, Quality, SMID Cap, software, technology

FIVE
3697.T
EVD.DE
XPEL
PAYC
CCCS

Polen Capital's Global SMID strategy underperformed in Q4 despite benefiting from rate optimism. Strong performance from Five Below's consumer resilience and Shift's AI-driven software testing growth was offset by weakness in Xpel and Paycom. Major strategy restructuring introduced team-based management and significant portfolio turnover. Focus remains on quality growth companies with long-term compounding potential.

Oct 19 2023

2023 Q3

0696.HK, ALIT, CCCS, DOXY, FIVE, GSHD, MORN, PGNY, XPEL, YETI

Automotive, global, growth, healthcare, insurance, SMID Cap, technology

GSHD
YETI
CCCS
ALIT
FIVE
AMDOCS
0696.HK
MORN
PGNY
XPEL

Polen Capital's Global SMID strategy underperformed in Q3 2023 due to security selection challenges amid macro uncertainty. Strong performance from insurance holdings Goosehead and CCC Intelligent Solutions was offset by weakness in Alight, Five Below, and Doximity. The manager actively repositioned the portfolio with six new positions and six exits, maintaining focus on long-term competitive advantages.

Oct 26 2022

2022 Q3

60N GR, AZTA, ENX GR, FIVE, PAYC, TEN

QUARTER	THEMES	TAGS
2025 Q1	Quality Polen Capital focuses on resilient businesses that can self-fund growth and execute across various economic backdrops. The quality growth investment style underperformed during the quarter as value outperformed growth.	Quality Growth Resilience Self-funding
	Small Caps The global SMID asset class faced turbulence with U.S. small caps declining sharply by 9.5% while international small caps showed resilience. The portfolio targets the MSCI ACWI SMID Cap Index.	SMID Small Cap Russell 2000 MSCI
	Gaming Lottomatica, an Italian gaming operator, was a top contributor leveraging its number-one position in the Italian gaming market and omnichannel presence to gain market share amidst rising penetration of online gambling.	Gaming Online gambling Italy Market share
	Beauty e.l.f. Beauty came under pressure due to tariff concerns and a broader slowdown in the cosmetics industry, though it maintains a compelling competitive position benefiting from its price advantage.	Beauty Cosmetics Tariffs Price advantage
	Trucking Saia was added as a new position, being a leader in the less-than-truckload segment in an industry undergoing consolidation. Despite cyclical slowdown, the company is positioned to emerge stronger with mid-teens earnings growth potential.	Trucking Less-than-truckload Consolidation Cyclical
2024 Q4	Beauty Initiated position in elf Beauty, a cosmetics company with reputation for quality and innovation at considerably lower prices than other mass cosmetics brands. The company has robust growth potential with low brand awareness, expanding shelf space, growing product portfolio, and early international expansion opportunities.	Cosmetics Innovation Value Growth International
	AI Exlservice experiencing strong demand from customers attempting to determine how to clean up and structure data for digital transformation including generative AI. The company invests heavily in developing GenAI-enabled tools and announced partnerships with Microsoft and AWS to co-develop AI solutions.	GenAI Data Digital Microsoft AWS
	Water Tetra Tech is focused on water and water infrastructure-related consulting and environmental services. Between significant infrastructure spending, potential for widespread PFAS cleanup, water scarcity, and changing environmental conditions, the demand backdrop is improving.	Infrastructure PFAS Scarcity Environmental Consulting
	Insurance Goosehead Insurance delivered strong performance despite headwinds from product availability and franchise productivity. Kinsale Capital is positioned in the excess and surplus lines market with solid financial performance and competitive advantages to capture market share.	Specialty E&S Franchise Market Share Performance
2024 Q3	Quality Polen focuses on high-quality companies with solid fundamentals, competitive advantages, and strong business models. The managers emphasize their disciplined approach to selecting companies that meet high hurdles for growth and returns. They maintain conviction in their quality growth-oriented portfolio despite recent volatility.	Quality Growth Fundamentals Competitive Advantages Business Models
	Beauty Polen initiated a position in elf Beauty, a cosmetics company positioned with quality, innovation, and considerably lower prices than other mass cosmetics brands. The company has robust growth potential with low brand awareness, expanding shelf space, and international expansion opportunities.	Beauty Cosmetics Innovation Brand International
	Data Services Polen added Exlservice, a business process outsourcing company that has become a leader in data services. The company experiences strong demand from customers attempting to clean up and structure data for digital transformation and generative AI applications.	Data Outsourcing Digital Transformation AI GenAI
	Water Polen initiated a position in Tetra Tech, an environmental consulting business focused on water and water infrastructure-related consulting. The demand backdrop is improving due to infrastructure spending, PFAS cleanup, water scarcity, and changing environmental conditions.	Water Infrastructure Environmental PFAS Consulting
	Insurance Polen holds positions in Goosehead Insurance and Kinsale Capital. Goosehead reported better-than-expected results despite headwinds, while Kinsale is positioned in the specialty excess and surplus lines market with competitive advantages for capturing market share.	Insurance Specialty Market Share Competitive Advantages E&S
2024 Q2	AI The letter discusses AI beneficiaries experiencing considerable hype and crowding, with Monolithic Power Systems specifically benefiting from AI-driven cloud-based CPU server applications in its enterprise data segment. The company saw compelling fundamentals largely due to growth in enterprise data driven by AI applications.	Artificial Intelligence Enterprise Data Cloud Computing Semiconductors Data Centers
	Volatility The portfolio experienced exaggerated volatility with stock price movements exhibiting above-average volatility despite little fundamental change. Companies that exceeded guidance saw robust price gains with valuations becoming disconnected from fundamentals, while those that missed expectations experienced precipitous declines.	Market Volatility Price Disconnection Fundamental Analysis Risk Management Market Dynamics
	Quality The managers maintain focus on high-quality companies with competitive advantages, robust balance sheets, and the ability to reinvest in any environment. They emphasize owning businesses with superior management teams, durability, and the ability to self-fund growth over lower-quality alternatives.	Quality Growth Competitive Advantages Balance Sheets Management Teams Sustainable Growth
2024 Q1	IT Services The portfolio holds multiple IT services companies including Globant and Endava, both facing headwinds from cautious client spending on digital transformation. Despite near-term challenges, the managers maintain confidence in long-term secular trends driving digital transformation and AI integration.	Digital Transformation Cloud AI Software
	Event Ticketing CTS Eventim, the European leader in ticketing and live entertainment, delivered strong results with revenues 65% above pre-COVID levels. The company benefits from secular trends of ticketing moving online and increased consumer spending on experiences, with blockbuster tours driving growth.	Live Entertainment Consumer Experiences Digital Ticketing
	Water Core & Main operates as an industrial distributor in the water infrastructure market, providing over 200,000 products for waterworks and fire protection. The company benefits from structural tailwinds given the need to repair and replace aging municipal water infrastructure.	Infrastructure Municipal Distribution
	Software Topicus.com, the European version of Constellation Software, provides vertical market mission-critical software. The company reported strong results with 27% revenue growth and benefits from operating in an attractive and fragmented industry with continued acquisition opportunities.	Vertical Software Mission Critical Acquisitions
2023 Q4	Discount Retail Five Below recovered from Q3 weakness with 14% year-on-year revenue growth and raised guidance. The discount retailer continues to outperform peers and benefits from consumers looking to stretch their dollar further in a challenging macro backdrop.	Five Below Consumer Value Retail Growth
	Software Shift, a Japanese software testing company, reported strong results boosted by AI expectations driving increased non-enterprise testing demand. Paycom's BETI self-service software adoption remains a priority despite short-term margin impacts.	Testing AI Payroll Japan Technology
	Event Ticketing CTS Eventim reported robust ticketing sales driven by blockbuster tours like Taylor Swift and Coldplay. The company sees significant demand rebound and benefits from secular trends of ticketing moving online and increased consumer spending on experiences.	Ticketing Entertainment Europe Experiences Digital
2023 Q3	Insurance Goosehead Insurance delivered robust results with 31% revenue growth and 36% premium increases, continuing to execute its plan to clean up corporate organization and return to pre-COVID productivity metrics. The company benefits from strong broker upgrades and S&P Small Cap Index inclusion.	Property & Casualty Brokerage Premiums Productivity Revenue Growth
	Healthcare IT Doximity operates as a social media platform for doctors, making money on pharmaceutical advertising with unique targeting capabilities by specialty. The company offers an attractive alternative to sales representatives with regulatory-compliant advertising formats that capture physicians while working.	Digital Health Physician Networks Pharmaceutical Advertising Medical Platforms Healthcare Software
	Auto Insurance CCC Intelligent Solutions leads the automotive insurance market through its CCC One platform, leveraging vast data sets and AI to automate insurance claims processes. The SaaS business model generates high returns on capital with durable growth as customers face inflation headwinds.	Claims Processing Data Analytics SaaS Automotive AI
	Specialty Retail Five Below reported in-line quarterly results but lowered outlook due to higher than normal shrink (theft). XPEL leads the automotive paint protection film market with increasing adoption over 5-10 years as car enthusiasts protect vehicles from damage.	Discount Retail Paint Protection Automotive Aftermarket Consumer Products Retail Theft

QUARTER

THEMES

Quality

Polen Capital focuses on resilient businesses that can self-fund growth and execute across various economic backdrops. The quality growth investment style underperformed during the quarter as value outperformed growth.

Quality Growth Resilience Self-funding

Small Caps

The global SMID asset class faced turbulence with U.S. small caps declining sharply by 9.5% while international small caps showed resilience. The portfolio targets the MSCI ACWI SMID Cap Index.

SMID Small Cap Russell 2000 MSCI

Gaming

Lottomatica, an Italian gaming operator, was a top contributor leveraging its number-one position in the Italian gaming market and omnichannel presence to gain market share amidst rising penetration of online gambling.

Gaming Online gambling Italy Market share

Beauty

e.l.f. Beauty came under pressure due to tariff concerns and a broader slowdown in the cosmetics industry, though it maintains a compelling competitive position benefiting from its price advantage.

Beauty Cosmetics Tariffs Price advantage

Trucking

Saia was added as a new position, being a leader in the less-than-truckload segment in an industry undergoing consolidation. Despite cyclical slowdown, the company is positioned to emerge stronger with mid-teens earnings growth potential.

Trucking Less-than-truckload Consolidation Cyclical

2024 Q4

Beauty

Initiated position in elf Beauty, a cosmetics company with reputation for quality and innovation at considerably lower prices than other mass cosmetics brands. The company has robust growth potential with low brand awareness, expanding shelf space, growing product portfolio, and early international expansion opportunities.

Cosmetics Innovation Value Growth International

AI

Exlservice experiencing strong demand from customers attempting to determine how to clean up and structure data for digital transformation including generative AI. The company invests heavily in developing GenAI-enabled tools and announced partnerships with Microsoft and AWS to co-develop AI solutions.

GenAI Data Digital Microsoft AWS

Water

Tetra Tech is focused on water and water infrastructure-related consulting and environmental services. Between significant infrastructure spending, potential for widespread PFAS cleanup, water scarcity, and changing environmental conditions, the demand backdrop is improving.

Infrastructure PFAS Scarcity Environmental Consulting

Insurance

Goosehead Insurance delivered strong performance despite headwinds from product availability and franchise productivity. Kinsale Capital is positioned in the excess and surplus lines market with solid financial performance and competitive advantages to capture market share.

Specialty E&S Franchise Market Share Performance

2024 Q3

Quality

Polen focuses on high-quality companies with solid fundamentals, competitive advantages, and strong business models. The managers emphasize their disciplined approach to selecting companies that meet high hurdles for growth and returns. They maintain conviction in their quality growth-oriented portfolio despite recent volatility.

Quality Growth Fundamentals Competitive Advantages Business Models

Beauty

Polen initiated a position in elf Beauty, a cosmetics company positioned with quality, innovation, and considerably lower prices than other mass cosmetics brands. The company has robust growth potential with low brand awareness, expanding shelf space, and international expansion opportunities.

Beauty Cosmetics Innovation Brand International

Data Services

Polen added Exlservice, a business process outsourcing company that has become a leader in data services. The company experiences strong demand from customers attempting to clean up and structure data for digital transformation and generative AI applications.

Data Outsourcing Digital Transformation AI GenAI

Water

Polen initiated a position in Tetra Tech, an environmental consulting business focused on water and water infrastructure-related consulting. The demand backdrop is improving due to infrastructure spending, PFAS cleanup, water scarcity, and changing environmental conditions.

Water Infrastructure Environmental PFAS Consulting

Insurance

Polen holds positions in Goosehead Insurance and Kinsale Capital. Goosehead reported better-than-expected results despite headwinds, while Kinsale is positioned in the specialty excess and surplus lines market with competitive advantages for capturing market share.

Insurance Specialty Market Share Competitive Advantages E&S

2024 Q2

AI

The letter discusses AI beneficiaries experiencing considerable hype and crowding, with Monolithic Power Systems specifically benefiting from AI-driven cloud-based CPU server applications in its enterprise data segment. The company saw compelling fundamentals largely due to growth in enterprise data driven by AI applications.

Artificial Intelligence Enterprise Data Cloud Computing Semiconductors Data Centers

Volatility

The portfolio experienced exaggerated volatility with stock price movements exhibiting above-average volatility despite little fundamental change. Companies that exceeded guidance saw robust price gains with valuations becoming disconnected from fundamentals, while those that missed expectations experienced precipitous declines.

Market Volatility Price Disconnection Fundamental Analysis Risk Management Market Dynamics

Quality

The managers maintain focus on high-quality companies with competitive advantages, robust balance sheets, and the ability to reinvest in any environment. They emphasize owning businesses with superior management teams, durability, and the ability to self-fund growth over lower-quality alternatives.

Quality Growth Competitive Advantages Balance Sheets Management Teams Sustainable Growth

2024 Q1

IT Services

The portfolio holds multiple IT services companies including Globant and Endava, both facing headwinds from cautious client spending on digital transformation. Despite near-term challenges, the managers maintain confidence in long-term secular trends driving digital transformation and AI integration.

Digital Transformation Cloud AI Software

Event Ticketing

CTS Eventim, the European leader in ticketing and live entertainment, delivered strong results with revenues 65% above pre-COVID levels. The company benefits from secular trends of ticketing moving online and increased consumer spending on experiences, with blockbuster tours driving growth.

Live Entertainment Consumer Experiences Digital Ticketing

Water

Core & Main operates as an industrial distributor in the water infrastructure market, providing over 200,000 products for waterworks and fire protection. The company benefits from structural tailwinds given the need to repair and replace aging municipal water infrastructure.

Infrastructure Municipal Distribution

Software

Topicus.com, the European version of Constellation Software, provides vertical market mission-critical software. The company reported strong results with 27% revenue growth and benefits from operating in an attractive and fragmented industry with continued acquisition opportunities.

Vertical Software Mission Critical Acquisitions

2023 Q4

Discount Retail

Five Below recovered from Q3 weakness with 14% year-on-year revenue growth and raised guidance. The discount retailer continues to outperform peers and benefits from consumers looking to stretch their dollar further in a challenging macro backdrop.

Five Below Consumer Value Retail Growth

Software

Shift, a Japanese software testing company, reported strong results boosted by AI expectations driving increased non-enterprise testing demand. Paycom's BETI self-service software adoption remains a priority despite short-term margin impacts.

Testing AI Payroll Japan Technology

Event Ticketing

CTS Eventim reported robust ticketing sales driven by blockbuster tours like Taylor Swift and Coldplay. The company sees significant demand rebound and benefits from secular trends of ticketing moving online and increased consumer spending on experiences.

Ticketing Entertainment Europe Experiences Digital

2023 Q3

Insurance

Goosehead Insurance delivered robust results with 31% revenue growth and 36% premium increases, continuing to execute its plan to clean up corporate organization and return to pre-COVID productivity metrics. The company benefits from strong broker upgrades and S&P Small Cap Index inclusion.

Property & Casualty Brokerage Premiums Productivity Revenue Growth

Healthcare IT

Doximity operates as a social media platform for doctors, making money on pharmaceutical advertising with unique targeting capabilities by specialty. The company offers an attractive alternative to sales representatives with regulatory-compliant advertising formats that capture physicians while working.

Digital Health Physician Networks Pharmaceutical Advertising Medical Platforms Healthcare Software

Auto Insurance

CCC Intelligent Solutions leads the automotive insurance market through its CCC One platform, leveraging vast data sets and AI to automate insurance claims processes. The SaaS business model generates high returns on capital with durable growth as customers face inflation headwinds.

Claims Processing Data Analytics SaaS Automotive AI

Specialty Retail

Five Below reported in-line quarterly results but lowered outlook due to higher than normal shrink (theft). XPEL leads the automotive paint protection film market with increasing adoption over 5-10 years as car enthusiasts protect vehicles from damage.

Discount Retail Paint Protection Automotive Aftermarket Consumer Products Retail Theft

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Sep 30, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	MORN	Morningstar	Financials	Financial Exchanges & Data	Bull	NASDAQ	EPS growth, ESG, financial data, investment management, margin expansion, Private markets, Share Buybacks	Login
Sep 30, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	FIVE	Five Below	Consumer Discretionary	Specialty Retail	Bull	NASDAQ	discount retail, Inventory Shrink, long-term prospects, Margin Impact, operational challenges, Theft Mitigation	Login
Sep 30, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	PGNY	Progyny	Health Care	Health Care Services	Bull	NASDAQ	Client Growth, Fertility Benefits, Healthcare services, High Returns on Capital, managed care, market share, Service Expansion	Login
Sep 30, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	YETI	Yeti Holdings	Consumer Discretionary	Leisure Products	Bull	NYSE	Consumer products, Coolers, Freight Costs, Guidance Raise, Lifestyle Brand, margin expansion, Outdoor	Login
Sep 30, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	XPEL	XPEL	Consumer Discretionary	Auto Parts & Equipment	Bull	NASDAQ	Authorized Dealers, automotive, Car Enthusiasts, Category Growth, international expansion, Paint Protection Film, Product Diversification	Login
Sep 30, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	CCCS	CCC Intelligent Solutions	Information Technology	Application Software	Bull	NYSE	AI, Automotive Insurance, Claims Processing, Data Analytics, High Returns on Capital, SaaS, technology leadership	Login
Sep 30, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	ALIT	Alight	Information Technology	IT Consulting & Other Services	Bull	NYSE	BPaaS, cloud-based, Employee Engagement, margin of safety, Opportunistic, subscription growth, Workplace Benefits	Login
Sep 30, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	AMDOCS	Doximity	Communication Services	Interactive Media & Services	Bull	NYSE	Healthcare Professionals, Pharmaceutical Advertising, Physician Targeting, regulatory compliance, Social Media Platform, Software Economics	Login
Sep 30, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	GSHD	Goosehead Insurance	Financials	Insurance Brokers	Bull	NASDAQ	Brokerage, Casualty, Insurance, margin expansion, Personal Lines, post-COVID recovery, Property, Revenue Growth	Login
Sep 30, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	0696.HK	TravelSky	Information Technology	Systems Software	Bull	HKEX	Airport Infrastructure, Chinese Aviation, margin expansion, Monopolistic Position, Normalized Earnings, Software, Travel Recovery	Login
Mar 1, 2025	Fund Letters	Polen Capital - Global SMID Company Growth	LOTTO.MI	Lottomatica	Consumer Discretionary	Casinos & Gaming	Bull	Borsa Italiana	Digital Transition, EBITDA Margin Expansion, Gaming, Italy, market leader, Omnichannel, online gambling, Value	Login
Mar 1, 2025	Fund Letters	Polen Capital - Global SMID Company Growth	GSHD	Goosehead Insurance	Financials	Insurance Brokers	Bull	NASDAQ	Contingent Commissions, EBITDA Margin Expansion, financial services, franchise model, growth, Insurance Broker, US	Login
Mar 1, 2025	Fund Letters	Polen Capital - Global SMID Company Growth	KLYJ.NS	Kalyan Jewellers	Consumer Discretionary	Specialty Retail	Neutral	National Stock Exchange of India	Corporate Governance, Emerging markets, India, Jewelry Retail, private equity, Returns on Capital, store expansion	Login
Mar 1, 2025	Fund Letters	Polen Capital - Global SMID Company Growth	GLOB	Globant	Information Technology	IT Consulting & Other Services	Bull	NYSE	cyclical headwinds, Digital transformation, Disney, IT services, Revenue Growth, South America, Technology Consulting	Login
Mar 1, 2025	Fund Letters	Polen Capital - Global SMID Company Growth	ELF	e.l.f. Beauty	Consumer Staples	Personal Care Products	Bull	NYSE	Beauty, Consumer Trade-Down, Cosmetics, market share gains, Price Advantage, US, Value Positioning	Login
Mar 1, 2025	Fund Letters	Polen Capital - Global SMID Company Growth	SAIA	Saia	Industrials	Trucking	Bull	NASDAQ	Cyclical Recovery, industry consolidation, Less-than-truckload, market leader, Transportation, Trucking, US, Value	Login
Mar 1, 2025	Fund Letters	Polen Capital - Global SMID Company Growth	8136.T	Sanrio	Communication Services	Entertainment	Bull	Tokyo Stock Exchange	Anime, Character Brands, Consumer products, entertainment, international expansion, Japan, Licensing, margin expansion	Login
Jun 30, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	ALIT	Alight	Information Technology	Data Processing & Outsourced Services	Bull	NYSE	Cloud software, Employee Benefits, growth, Hr Technology, SaaS, technology, Workplace Tools	Login
Jun 30, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	PME.AX	Pro Medicus	Health Care	Health Care Technology	Bull	ASX	AI Diagnostics, Australia, growth, healthcare, healthcare software, medical imaging, medical technology, SaaS	Login
Jun 30, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	DLO	dLocal	Information Technology	Data Processing & Outsourced Services	Bull	NASDAQ	digital payments, Emerging markets, Fintech, growth, Payments processing, technology, Uruguay	Login
Jun 30, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	MPWR	Monolithic Power Systems	Information Technology	Semiconductors & Semiconductor Equipment	Bull	NASDAQ	AI infrastructure, Analog Circuits, Enterprise Data, growth, Power management, semiconductors, technology	Login
Jun 30, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	DATA.L	GlobalData	Communication Services	Interactive Media & Services	Bull	LSE	business intelligence, Data Analytics, growth, Market Research, professional services, subscription model, UK	Login
Jun 30, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	PGNY	Progyny	Health Care	Health Care Services	Bull	NASDAQ	Employee Benefits, Fertility Benefits, growth, healthcare, Healthcare services, IVF, managed care	Login
Jun 30, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	TME	Tencent Music Entertainment	Communication Services	Interactive Media & Services	Bull	NYSE	China, Communication Services, digital media, growth, Music streaming, SaaS, subscription model	Login
Jun 30, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	4480.T	Medley	Health Care	Health Care Services	Bull	TSE	Demographics, digital health, growth, Healthcare Technology, Human Resources, Japan, Medical Services	Login
Mar 31, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	TOI.TO	Topicus.com	Information Technology	Systems Software	Bull	TSX	acquisition strategy, European markets, growth, Mission-Critical, recurring revenue, SaaS, vertical software	Login
Mar 31, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	DAVA	Endava	Information Technology	IT Consulting & Other Services	Bull	NYSE	contrarian, Digital transformation, financial services, IT services, Payments, UK-Based, value opportunity	Login
Mar 31, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	EVD.DE	CTS Eventim	Communication Services	Movies & Entertainment	Bull	XETRA	European markets, Experience Economy, growth, Live entertainment, market leader, Online Migration, Ticketing	Login
Mar 31, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	CNM	Core & Main	Industrials	Trading Companies & Distributors	Bull	NYSE	defensive, Industrial distribution, infrastructure spending, M&A strategy, Municipal Markets, Specialized Distribution, Water infrastructure	Login
Mar 31, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	3697.T	Shift	Information Technology	IT Consulting & Other Services	Bull	Tokyo Stock Exchange	growth, Japanese Markets, market opportunity, Outsourcing, Software Testing, talent management, Technology Services	Login
Mar 31, 2024	Fund Letters	Polen Capital - Global SMID Company Growth	GLOB	Globant	Information Technology	IT Consulting & Other Services	Bull	NYSE	AI integration, Bull, cloud-native, Digital transformation, High Growth, IT services, Technology Consulting	Login
Dec 31, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	XPEL	XPEL Inc	Consumer Discretionary	Auto Components	Neutral	NASDAQ	Adjacent Markets, Automotive Aftermarket, Geographic Expansion, market leadership, Paint Protection Film, Tesla Competition	Login
Dec 31, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	PAYC	Paycom Software Inc	Information Technology	Application Software	Bull	NYSE	BETI Platform, Client Retention, Human capital management, market share gains, Payroll Software, SaaS, Self-Service Technology	Login
Dec 31, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	CCCS	CCC Intelligent Solutions Holdings Inc	Information Technology	Application Software	Neutral	NYSE	Acquisition Speculation, Automotive Insurance, Ecosystem Platform, Insurance Technology, Insurance-software, Parts Suppliers, Repair Shops	Login
Dec 31, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	FIVE	Five Below	Consumer Discretionary	Specialty Retail	Bull	NASDAQ	comparable-store sales, Consumer Discretionary, discount retail, margin expansion, Specialty retail, store expansion, Value Retailer	Login
Dec 31, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	3697.T	Shift	Information Technology	IT Services	Bull	Tokyo Stock Exchange	AI technology, Engineering Talent, IT services, Japan, organic growth, Outsourcing, Software Testing	Login
Dec 31, 2023	Fund Letters	Polen Capital - Global SMID Company Growth	EVD.DE	CTS Eventim	Communication Services	Interactive Media & Services	Bull	XETRA	Digital transformation, Europe, Experiential Spending, Live entertainment, market leadership, post-COVID recovery, Ticketing	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Sep 30, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

MORN

Morningstar

Financials

Financial Exchanges & Data

Bull

NASDAQ

EPS growth, ESG, financial data, investment management, margin expansion, Private markets, Share Buybacks

Sep 30, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

FIVE

Five Below

Consumer Discretionary

Specialty Retail

Bull

NASDAQ

discount retail, Inventory Shrink, long-term prospects, Margin Impact, operational challenges, Theft Mitigation

Sep 30, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

PGNY

Progyny

Health Care

Health Care Services

Bull

NASDAQ

Client Growth, Fertility Benefits, Healthcare services, High Returns on Capital, managed care, market share, Service Expansion

Sep 30, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

YETI

Yeti Holdings

Consumer Discretionary

Leisure Products

Bull

NYSE

Consumer products, Coolers, Freight Costs, Guidance Raise, Lifestyle Brand, margin expansion, Outdoor

Sep 30, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

XPEL

Consumer Discretionary

Auto Parts & Equipment

Bull

NASDAQ

Authorized Dealers, automotive, Car Enthusiasts, Category Growth, international expansion, Paint Protection Film, Product Diversification

Sep 30, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

CCCS

CCC Intelligent Solutions

Information Technology

Application Software

Bull

NYSE

AI, Automotive Insurance, Claims Processing, Data Analytics, High Returns on Capital, SaaS, technology leadership

Sep 30, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

ALIT

Alight

Information Technology

IT Consulting & Other Services

Bull

NYSE

BPaaS, cloud-based, Employee Engagement, margin of safety, Opportunistic, subscription growth, Workplace Benefits

Sep 30, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

AMDOCS

Doximity

Communication Services

Interactive Media & Services

Bull

NYSE

Healthcare Professionals, Pharmaceutical Advertising, Physician Targeting, regulatory compliance, Social Media Platform, Software Economics

Sep 30, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

GSHD

Goosehead Insurance

Financials

Insurance Brokers

Bull

NASDAQ

Brokerage, Casualty, Insurance, margin expansion, Personal Lines, post-COVID recovery, Property, Revenue Growth

Sep 30, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

0696.HK

TravelSky

Information Technology

Systems Software

Bull

HKEX

Airport Infrastructure, Chinese Aviation, margin expansion, Monopolistic Position, Normalized Earnings, Software, Travel Recovery

Mar 1, 2025

Fund Letters

Polen Capital - Global SMID Company Growth

LOTTO.MI

Lottomatica

Consumer Discretionary

Casinos & Gaming

Bull

Borsa Italiana

Digital Transition, EBITDA Margin Expansion, Gaming, Italy, market leader, Omnichannel, online gambling, Value

Mar 1, 2025

Fund Letters

Polen Capital - Global SMID Company Growth

GSHD

Goosehead Insurance

Financials

Insurance Brokers

Bull

NASDAQ

Contingent Commissions, EBITDA Margin Expansion, financial services, franchise model, growth, Insurance Broker, US

Mar 1, 2025

Fund Letters

Polen Capital - Global SMID Company Growth

KLYJ.NS

Kalyan Jewellers

Consumer Discretionary

Specialty Retail

Neutral

National Stock Exchange of India

Corporate Governance, Emerging markets, India, Jewelry Retail, private equity, Returns on Capital, store expansion

Mar 1, 2025

Fund Letters

Polen Capital - Global SMID Company Growth

GLOB

Globant

Information Technology

IT Consulting & Other Services

Bull

NYSE

cyclical headwinds, Digital transformation, Disney, IT services, Revenue Growth, South America, Technology Consulting

Mar 1, 2025

Fund Letters

Polen Capital - Global SMID Company Growth

ELF

e.l.f. Beauty

Consumer Staples

Personal Care Products

Bull

NYSE

Beauty, Consumer Trade-Down, Cosmetics, market share gains, Price Advantage, US, Value Positioning

Mar 1, 2025

Fund Letters

Polen Capital - Global SMID Company Growth

SAIA

Saia

Industrials

Trucking

Bull

NASDAQ

Cyclical Recovery, industry consolidation, Less-than-truckload, market leader, Transportation, Trucking, US, Value

Mar 1, 2025

Fund Letters

Polen Capital - Global SMID Company Growth

8136.T

Sanrio

Communication Services

Entertainment

Bull

Tokyo Stock Exchange

Anime, Character Brands, Consumer products, entertainment, international expansion, Japan, Licensing, margin expansion

Jun 30, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

ALIT

Alight

Information Technology

Data Processing & Outsourced Services

Bull

NYSE

Cloud software, Employee Benefits, growth, Hr Technology, SaaS, technology, Workplace Tools

Jun 30, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

PME.AX

Pro Medicus

Health Care

Health Care Technology

Bull

ASX

AI Diagnostics, Australia, growth, healthcare, healthcare software, medical imaging, medical technology, SaaS

Jun 30, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

DLO

dLocal

Information Technology

Data Processing & Outsourced Services

Bull

NASDAQ

digital payments, Emerging markets, Fintech, growth, Payments processing, technology, Uruguay

Jun 30, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

MPWR

Monolithic Power Systems

Information Technology

Semiconductors & Semiconductor Equipment

Bull

NASDAQ

AI infrastructure, Analog Circuits, Enterprise Data, growth, Power management, semiconductors, technology

Jun 30, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

DATA.L

GlobalData

Communication Services

Interactive Media & Services

Bull

LSE

business intelligence, Data Analytics, growth, Market Research, professional services, subscription model, UK

Jun 30, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

PGNY

Progyny

Health Care

Health Care Services

Bull

NASDAQ

Employee Benefits, Fertility Benefits, growth, healthcare, Healthcare services, IVF, managed care

Jun 30, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

TME

Tencent Music Entertainment

Communication Services

Interactive Media & Services

Bull

NYSE

China, Communication Services, digital media, growth, Music streaming, SaaS, subscription model

Jun 30, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

4480.T

Medley

Health Care

Health Care Services

Bull

TSE

Demographics, digital health, growth, Healthcare Technology, Human Resources, Japan, Medical Services

Mar 31, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

TOI.TO

Topicus.com

Information Technology

Systems Software

Bull

TSX

acquisition strategy, European markets, growth, Mission-Critical, recurring revenue, SaaS, vertical software

Mar 31, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

DAVA

Endava

Information Technology

IT Consulting & Other Services

Bull

NYSE

contrarian, Digital transformation, financial services, IT services, Payments, UK-Based, value opportunity

Mar 31, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

EVD.DE

CTS Eventim

Communication Services

Movies & Entertainment

Bull

XETRA

European markets, Experience Economy, growth, Live entertainment, market leader, Online Migration, Ticketing

Mar 31, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

CNM

Core & Main

Industrials

Trading Companies & Distributors

Bull

NYSE

defensive, Industrial distribution, infrastructure spending, M&A strategy, Municipal Markets, Specialized Distribution, Water infrastructure

Mar 31, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

3697.T

Shift

Information Technology

IT Consulting & Other Services

Bull

Tokyo Stock Exchange

growth, Japanese Markets, market opportunity, Outsourcing, Software Testing, talent management, Technology Services

Mar 31, 2024

Fund Letters

Polen Capital - Global SMID Company Growth

GLOB

Globant

Information Technology

IT Consulting & Other Services

Bull

NYSE

AI integration, Bull, cloud-native, Digital transformation, High Growth, IT services, Technology Consulting

Dec 31, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

XPEL

XPEL Inc

Consumer Discretionary

Auto Components

Neutral

NASDAQ

Adjacent Markets, Automotive Aftermarket, Geographic Expansion, market leadership, Paint Protection Film, Tesla Competition

Dec 31, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

PAYC

Paycom Software Inc

Information Technology

Application Software

Bull

NYSE

BETI Platform, Client Retention, Human capital management, market share gains, Payroll Software, SaaS, Self-Service Technology

Dec 31, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

CCCS

CCC Intelligent Solutions Holdings Inc

Information Technology

Application Software

Neutral

NYSE

Acquisition Speculation, Automotive Insurance, Ecosystem Platform, Insurance Technology, Insurance-software, Parts Suppliers, Repair Shops

Dec 31, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

FIVE

Five Below

Consumer Discretionary

Specialty Retail

Bull

NASDAQ

comparable-store sales, Consumer Discretionary, discount retail, margin expansion, Specialty retail, store expansion, Value Retailer

Dec 31, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

3697.T

Shift

Information Technology

IT Services

Bull

Tokyo Stock Exchange

AI technology, Engineering Talent, IT services, Japan, organic growth, Outsourcing, Software Testing

Dec 31, 2023

Fund Letters

Polen Capital - Global SMID Company Growth

EVD.DE

CTS Eventim

Communication Services

Interactive Media & Services

Bull

XETRA

Digital transformation, Europe, Experiential Spending, Live entertainment, market leadership, post-COVID recovery, Ticketing

TICKER	COMMENTARY
8136.T	Sanrio, a Japanese entertainment company best known for the Hello Kitty franchise, delivered robust results during the period. Growth in licensing in the U.S. and China, driven by Hello Kitty's 50th anniversary promotions, led to substantial margin expansion. We continue to hold Sanrio in the Portfolio, given the long-term opportunities from continued growth of Hello Kitty, greater international anime penetration, and further margin gains from licensing growth in China and the U.S.
GSHD	Goosehead Insurance, a U.S. insurance broker, reported stronger-than-expected results driven by higher contingent commissions and expanding EBITDA margins. Core revenues increased and management remains optimistic about accelerating growth in 2025. Goosehead's ability to balance robust top-line growth with prudent margin expansion reinforces our confidence in its long-term trajectory.
GLOB	Globant, a U.S.-listed South American IT services company, posted disappointing Q4 FY24 results. The market was dissatisfied with FY25 revenue guidance, which fell short of expectations for accelerating growth. Results were impacted by the pull-forward of revenue from Globant's largest client, Disney, as well as overall weakness in Latin America due to political instability. Tighter IT budgets and a spending shift toward hardware are also creating headwinds across the industry. We have maintained our position, as management remains confident in Globant's ability to compound revenues at 20% per year in a healthier environment.
ELF	e.l.f. Beauty, a U.S.-based cosmetics company, came under pressure during the quarter. Tariff concerns, a broader slowdown in the cosmetics and beauty industry, and timing-related headwinds with retail customers resulted in slower growth than anticipated. Nonetheless, Elf maintains a compelling competitive position, benefiting from its price advantage, and could gain further market share should consumers trade down. We used the recent dislocation in the stock price as an opportunity to add to our position.
KLYJ.NS	Kalyan Jewellers, an Indian jewelry retailer, was impacted by a broader sell-off in Indian small and mid cap stocks and by some corporate governance concerns. We have investigated these concerns and found them to be legacy issues predating the company's listing and subsequent restructuring by a well-known global private equity firm. Meanwhile, Kalyan has continued to report solid growth and meet its store expansion targets. We reduced our position as part of an effort to decrease overall India exposure but have maintained a holding given the attractive long-term growth outlook and improving returns on capital.
SAIA	We also established a position in Saia, a U.S. trucking company. Saia is a leader in the less-than-truckload segment, an industry undergoing consolidation due to increasing operational complexity. Saia aims to be a consolidator and, despite a recent cyclical slowdown, we believe the company will emerge even stronger, delivering mid-teens earnings growth over time. The stock was purchased at 12x EBITDA, a discount to its closest U.S. peers.
AXSB.NS	Axis Bank was sold due to concerns regarding its growth outlook, as both the Indian economy and company-specific initiatives to accelerate growth showed signs of stalling.
BAH	In the U.S., we exited Booz Allen Hamilton and Tetra Tech—both government contractors. Given the current uncertainty surrounding the U.S. budget and government efficiency initiatives, we decided to reallocate to opportunities with more attractive risk/reward profiles.
TTEK	In the U.S., we exited Booz Allen Hamilton and Tetra Tech—both government contractors. Given the current uncertainty surrounding the U.S. budget and government efficiency initiatives, we decided to reallocate to opportunities with more attractive risk/reward profiles.

TICKER

COMMENTARY

8136.T

Sanrio, a Japanese entertainment company best known for the Hello Kitty franchise, delivered robust results during the period. Growth in licensing in the U.S. and China, driven by Hello Kitty's 50th anniversary promotions, led to substantial margin expansion. We continue to hold Sanrio in the Portfolio, given the long-term opportunities from continued growth of Hello Kitty, greater international anime penetration, and further margin gains from licensing growth in China and the U.S.

GSHD

Goosehead Insurance, a U.S. insurance broker, reported stronger-than-expected results driven by higher contingent commissions and expanding EBITDA margins. Core revenues increased and management remains optimistic about accelerating growth in 2025. Goosehead's ability to balance robust top-line growth with prudent margin expansion reinforces our confidence in its long-term trajectory.

GLOB

Globant, a U.S.-listed South American IT services company, posted disappointing Q4 FY24 results. The market was dissatisfied with FY25 revenue guidance, which fell short of expectations for accelerating growth. Results were impacted by the pull-forward of revenue from Globant's largest client, Disney, as well as overall weakness in Latin America due to political instability. Tighter IT budgets and a spending shift toward hardware are also creating headwinds across the industry. We have maintained our position, as management remains confident in Globant's ability to compound revenues at 20% per year in a healthier environment.

ELF

e.l.f. Beauty, a U.S.-based cosmetics company, came under pressure during the quarter. Tariff concerns, a broader slowdown in the cosmetics and beauty industry, and timing-related headwinds with retail customers resulted in slower growth than anticipated. Nonetheless, Elf maintains a compelling competitive position, benefiting from its price advantage, and could gain further market share should consumers trade down. We used the recent dislocation in the stock price as an opportunity to add to our position.

KLYJ.NS

Kalyan Jewellers, an Indian jewelry retailer, was impacted by a broader sell-off in Indian small and mid cap stocks and by some corporate governance concerns. We have investigated these concerns and found them to be legacy issues predating the company's listing and subsequent restructuring by a well-known global private equity firm. Meanwhile, Kalyan has continued to report solid growth and meet its store expansion targets. We reduced our position as part of an effort to decrease overall India exposure but have maintained a holding given the attractive long-term growth outlook and improving returns on capital.

SAIA

We also established a position in Saia, a U.S. trucking company. Saia is a leader in the less-than-truckload segment, an industry undergoing consolidation due to increasing operational complexity. Saia aims to be a consolidator and, despite a recent cyclical slowdown, we believe the company will emerge even stronger, delivering mid-teens earnings growth over time. The stock was purchased at 12x EBITDA, a discount to its closest U.S. peers.

AXSB.NS

Axis Bank was sold due to concerns regarding its growth outlook, as both the Indian economy and company-specific initiatives to accelerate growth showed signs of stalling.

BAH

In the U.S., we exited Booz Allen Hamilton and Tetra Tech—both government contractors. Given the current uncertainty surrounding the U.S. budget and government efficiency initiatives, we decided to reallocate to opportunities with more attractive risk/reward profiles.

TTEK

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
No Recent Buys Data

Ticker

Put/Call

Amount Bought

Shares Bought

% Change

Weight %

No Recent Buys Data

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
No Recent Sells Data

Ticker

Put/Call

Amount Sold

Shares Sold

% Change

Weight %

Status

No Recent Sells Data

Industry	Prev Quarter %	Current Quarter %	Change
No industry data available

Industry

Prev Quarter %

Current Quarter %

Change

No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2025

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Quality

Small Caps

Gaming

Beauty

Trucking

Beauty

AI

Water

Insurance

Quality

Beauty

Data Services

Water

Insurance

AI

Volatility

Quality

IT Services

Event Ticketing

Water

Software

Discount Retail

Software

Event Ticketing

Insurance

Healthcare IT

Auto Insurance

Specialty Retail

Investor Pitches

Current Portfolio as of ( 31st March 2025 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Greg McIntire Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

Join for free and get access to the buyside

Get insights from the world's most influential hedge fund investors direct to your inbox

Follow Us On:

Subscribe to receive email notification and updates for:

Polen Capital – Global SMID Company Growth