Polen Perspectives Webinar: Beyond the Noise

Rising rates and inflation, combined with recessionary concerns, have prompted a shift in capital market assumptions and, for many investors, a re-think of their asset allocation. Drawing from their combined 65 years of investment experience, Polen Focus Growth portfolio manager Dan Davidowitz and head of Polen’s U.S. High Yield team David Breazzano put the confluence of market forces facing investors today into perspectives and offer their outlook heading into 2023.

Webinar Q&A Highlights

• Opening introduction (0:29)
• Data visualization of traditional 60/40 portfolio performance during drawdowns (1:51)
• Headwinds impacting the earnings potential of Polen Focus Growth Portfolio companies (4:45)
• How has market dislocation & noise created opportunities for Polen U.S. High Yield? (7:47)
• Observations on fixed income risks & yield potential in rising rate environments (9:18)
• For equities, why do we continue to have high conviction in secular growth companies? (11:30)

The dislocation we’ve experienced in the last 12+ months provides an active manager with a real opportunity to create some value.

—David Breazzano, head of Polen’s High Yield Team

• Historical perspective on the 2008 equities drawdown & why we think today’s different (14:26)
• How does recession pressure factor into company selection for Polen Focus Growth? (20:48)
• Thoughts on if our concentration in U.S. High Yield will help during a recessionary environment (23:32)
• Building the case for investing in large company growth equities over the long term (28:54)
• Does active management in credit offer potential advantages over broader fixed income? (33:22)
• Examples of what we consider “safety-like” companies in the Polen Focus Growth Portfolio (35:07)
• What roles do private equity & company debt play in the high yield space for Polen? (40:36)
• How research & fundamentals help Polen separate stories from facts to cut though the noise (42:19)
• Closing remarks (46:18)

To date, we haven’t seen really anything that’s shaken our confidence in the competitive advantages of our companies.

—Dan Davidowitz, Polen Focus Growth portfolio manager

Important Disclosures
This is being provided for informational purposes only. Opinions and views expressed constitute the judgment of Polen Capital as of December 8, 2022, may involve a number of assumptions and estimates which are not guaranteed, and are subject to change without notice. Although the information and any opinions or views given have been obtained from or based on sources believed to be reliable, no warranty or representation is made as to their correctness, completeness, or accuracy. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice, including any forward-looking estimates or statements which are based on certain expectations and assumptions. The views and strategies described may not be suitable for all clients. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations. This document does not identify all the risks (direct or indirect) or other considerations which might be material when entering any financial transaction.

This information should not be construed as a recommendation to purchase, hold, or sell any particular security. Specific securities described may or may not be held in portfolios managed by Polen Capital. There is no assurance that any securities discussed herein will be in the portfolio at the time you review this video or that any securities sold have not been repurchased. The securities discussed do not necessarily represent the entire portfolio. It should not be assumed that any of the securities, transactions or holdings discussed were or will prove to be profitable or that any investment recommendations we make in the future will equal the investment performance of the securities discussed herein. For a complete list of Polen Capital’s past specific recommendations for the last year, please contact [email protected].