1Q2020 – Global Growth Commentary

Since inception, and for the more than 30 years that we have been executing our investment discipline, we have consistently captured less of the market’s downside during difficult times.

  • Global markets dropped in unison as COVID-19 spread to nearly all corners of the world. The U.S. market experienced the fastest 30% decline in its history, and the economy has seen a rapid spike in unemployment claims as consumers stay home and businesses have had to close their doors.
  • During the first quarter of 2020, the Polen Global Growth Model Portfolio (the “Portfolio”) returned -12.68% gross of fees, outperforming the MSCI All-Country World Index (the “Index”) return of -21.36%. Since inception on January 1, 2015, the Portfolio has delivered an annualized investment result of 12.18% gross of fees compared to a 3.16% annualized return from the Index. Thus, the Portfolio has outperformed the Index by more than 900 basis points per year on average.
  • The Portfolio only captured 77% of the downside this quarter and ranks in the top decile of the eVestment Global Large Cap Growth Equity universe for (lack of) downside capture since inception.
  • We will take action in seeking to avoid or minimize any risks, like selling O’Reilly Automotive and trimming EssilorLuxottica. And, we will certainly be ready to take advantage of any new opportunities like our LVMH and Autodesk purchases. That said, even if we chose to leave the Portfolio unchanged, we believe we would be positioned well because we are operating from a place of strength.
  • We are in uncertain times now, but we are confident that Polen Capital, overall, and our investment approach are built to manage through these types of challenges.

Read the full commentary here →