Our International Growth strategy applies the time-tested Polen Capital investment philosophy to invest in businesses primarily based outside the United States. We manage a portfolio of 25-35 high-quality growth companies for the long term. We believe concentration limits risk by sharpening our focus toward truly high-quality businesses and away from the excessive cyclicality characteristic in many international stocks. Beyond our bias toward quality, our long-term perspective hones our focus toward companies with enduring growth prospects. We view earnings growth as the core driver of share prices over the long run. Quality companies tend to generate growth on the basis of superior competitive positions, sharp management and smart execution. These characteristics matter to us. Importantly, quality businesses often contribute consistency in earnings growth across market cycles. Polen Capital’s decades of experience solidifies our belief in these principles.
The Polen International Growth strategy is managed by Todd Morris, who has served in previous roles as an analyst and Director of Research at the Firm. The International Growth strategy is available through Separately Managed Accounts (SMAs), and a Mutual Fund.
The margin of safety in our investment operation comes through constituent company quality. We believe a portfolio holding 25-35 high-quality businesses is structured to outgrow the MSCI ACWI (ex-US) Index over the long run. This occurs through a combination of lower volatility and faster earnings growth. Lower volatility is characteristic of Polen Capital’s concentrated portfolios with a bias toward higher-quality companies; those with competitive advantages, superior returns on equity and the ability to reinvest in their businesses at high incremental rates of return. Consistent reinvestment at high rates of return is the means through which faster earnings growth occurs.
Beyond these points we emphasize:
Our long-term focus enables a temperamental edge. We believe a clear understanding for the competitive differentiation each company enjoys and a continued focus on the future will enable us to weather the market’s vicissitudes.
We believe that we have a sustainable competitive advantage in our investment approach, driven by our concentration, long-term orientation and discipline.
Dan Davidowitz   |   CIO & Portfolio Manager