Re-opening trades, vaccines, and interest rates are all very interesting. But, in our experience, long-term investment returns are driven by sustainable earnings growth.
Going beyond with the Polen Large Company Growth Team
Our Large Company Growth strategies are based on a high-conviction, quality mindset, and our efforts are focused on both growth and capital preservation. With disciplined, unemotional selling criteria and risk mitigation guardrails underpinning our process, we seek to identify quality companies that we believe are positioned for long-term sustainable growth and continuously re-evaluate these companies with an objective lens.
We are driven by our pursuit for what we believe is our best idea companies, following a rigorous screening and iterative deep-dive research process, going beyond fundamentals to invest across the growth spectrum, and focusing on our goal of delivering consistent, risk-minded returns.
Expertise, Experience & Analysis
The Large Company Growth Team is a diverse group where every member serves as an equity analyst. The team has deep experience with stock selection, uses a highly collaborative and disciplined research and management process, and focuses on our best ideas to identify and maintain concentrated portfolios of what we believe are the highest quality companies worldwide.
Located: Boca Raton, FL
Head of Team: Damon Ficklin, Portfolio Manager & Analyst
Average Team Member Experience: 13 years
Our Investment Philosophy
We are committed to pursuing a high conviction strategy designed to add value and grow the assets of our clients over the long term.
—Damon Ficklin, Head of Team, Portfolio Manager & Analyst
Our Time-Tested Approach
Polen Large Company Growth Stock Selection Process
The Large Company Growth Team selects stocks through its time-tested process, which has been fine-tuned over three decades and utilizes in-depth research and stringent guardrails for objective screening and monitoring. Our efforts focus on identifying and keeping only what we have identified to be our best ideas that demonstrate competitive advantages and sustainable growth potential across long-term time horizons.
The Polen Large Company Growth strategies typically hold 20 to 35 companies that the portfolio management team feels are the highest-quality growth names. Examples as of 6/30/2021 include:
Adobe is the market leader in digital and creative software solutions. With low leverage, high profitability, high recurring revenues, and a capital-light business model, Adobe continues to strengthen its value proposition as a mission-critical partner to governments and enterprises. The need for a digital-first customer experience is accelerating, in our view, and we expect the demand for Adobe’s services to increase.
We view Alibaba as arguably one of the most dominant businesses globally and believe it is also playing an integral role in China’s ambitions to reorient its export-driven economy to one that is domestically consumption-driven. Alibaba’s core commerce business continues to compound at high rates while enjoying low total addressable market penetration and multiple competitive advantages.
Tencent serves more than 1 billion users globally with a variety of utilities, and it is the largest video game platform in the world. Beyond communications and gaming, Tencent offers users numerous other valuable services, from social media and varied digital content to digital payments. We believe Tencent could grow earnings greater than 20% annually for the next five years.
Recent Large Company Growth Perspectives
Why traditional software business evolving toward a recurring revenue model is blurring the lines between safety & growth
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Dan Davidowitz speaks with Motley Fool about Polen Capital’s growth investing philosophy & why he feels it continues to deliver results for clients
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We greatly prefer to own the businesses that are disrupting rather than those being disrupted.
We always seek to understand the underlying business drivers and secular tailwinds to consistently position the Portfolio for long-term growth.
Watch Damon Ficklin discuss why he believes focusing on only the highest quality growth companies with margins of safety pays off at Polen Capital
Jeff Mueller, Polen Global Growth Portfolio Manager, discusses why the rise of baby boomers embracing technology during COVID-19 has become a notable investment theme
Polen Capital Management, LLC is an independent registered investment advisor.
The information is provided for illustrative purposes only. Opinions and views expressed constitute the judgment of Polen Capital as of the period indicated , may involve a number of assumptions and estimates which are not guaranteed, and are subject to change without update. 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 update, 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. This information does not identify all the risks (direct or indirect) or other considerations which might be material to you when entering any financial transaction.
Holdings are subject to change. The holdings, as well as other data, are as of the period indicated and should not be considered as a recommendation to purchase, hold or sell any particular security. There is no assurance that any of the securities noted will remain in a portfolio at the time you review this information. Actual holding and percentage allocation in individual client portfolios may vary and are subject to change. The securities discussed do not necessarily represent the entire portfolio. It should not be assumed that any of the holdings discussed were or will prove to be profitable or that the investment recommendations or decisions we make in the future will be profitable. A list of all securities held in this portfolio in the prior year is available upon request. Past performance does not guarantee future results and profitable results cannot be guaranteed.