Value Investor Insight: Pursuing Enduring Growth Opportunities Around the World
Polen International Growth PMs discuss where they see the most compelling investment opportunities today.
Article Highlights
Value Investor Insight recently sat down with portfolio managers Todd Morris and Daniel Fields, who co-manage the Polen International Growth strategy. They discuss how Polen has extended the consistency and discipline of its U.S. investment approach to international markets and identify some of the most intriguing opportunities they see on the horizon.
- When investing internationally, there are important nuances relating to political, legal, and regulatory environments and foreign currency dynamics. Polen’s investment team conducts a rigorous assessment of these risks, considering the potential for macro factors to negate even their best bottom-up work. If they deem that risk too high, they won’t invest.
- One benefit of Polen’s concentrated investment approach is that the portfolio managers can easily say "no" whenever a company’s valuation takes them further out on the risk spectrum than they’d like to be.
- Polen’s International Growth strategy has been overweight in Europe, largely due to the guardrails the team has defined around business quality and growth. Todd and Daniel explain that when it comes to China, certain issues tied to risk have kept them on the sidelines.
- Todd and Daniel highlight key sectors where they are uncovering what they believe to be outstanding, fairly priced businesses capable of compounding their growth over the long term. These areas include distribution, accounting software, and outsourced drug trials.
One thing we think differentiates us is our focus on the stability of growth, not just the magnitude of growth.
Important Disclosures
Please note that this document is a condensed summary of the full interview conducted by Value Investor Insight.
This information is provided for illustrative purposes only. Opinions and views expressed constitute the judgment of Polen Capital as of February 2024 and may involve a number of assumptions and estimates which are not guaranteed and are subject to change without notice or 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 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. This document does not identify all the risks (direct or indirect) or other considerations that might be material to you when entering any financial transaction. Past performance does not guarantee future results and profitable results cannot be guaranteed.