1Q2020 – International Small Company Growth Commentary

We want to own businesses that self-fund and have the flexibility to make thoughtful long-term investments that could make the enterprise stronger.

  • During the first quarter of 2020, the Polen International Small Company Growth Composite Portfolio (the “Portfolio”) returned -21.98% gross of fees versus -29.01% for the MSCI ACWI ex-USA Small Capitalization Index (the “Index”). The Portfolio outperformed the Index by a 7.03% margin on a gross of fees basis.
  • Polen Capital’s guardrails seek to ensure that we buy only the highest quality companies in the world. We want to own businesses that self-fund and have the flexibility to make thoughtful long-term investments that can make the enterprise stronger. Most importantly, we want to own companies that we believe possess the characteristics to survive and thrive in any environment.
  • We were more active in the quarter than is typical, selling several positions to free up capital to invest in what we believe to be better alternatives with higher expected returns and/or a narrower range of outcomes. We initiated positions in Bolsa Mexicana de Valores (BMV) and Altus Group and added to our positions in Technology One and Homeserve.
  • We will continue to work on finding and owning what we believe to be the best companies in the world. We believe that the high-quality companies we seek to own will compound in nearly any environment and, more important than ever, survive difficult periods.

Read the full commentary here