- During the first quarter of 2021, the Polen International Small Company Growth Composite Portfolio (the “Portfolio”) returned -2.03% gross of fees versus 5.53% for the MSCI ACWI ex-USA Small Capitalization Index (the “Index”).
- Since its inception on January 2, 2019, the Portfolio has returned 26.43% gross of fees per annum, versus the Index return of 18.90%, outperforming by 7.53%.
- Cyclical and lower quality companies, those with high debt and low profitability, generally have recovered sharply since late last year.
- Meanwhile, high quality companies, like the ones we seek, have generally underperformed on a relative basis.
- We initiated positions in Smaregi and Cybozu and added to Koh Young Technology. We exited positions in Rightmove, M Dias Branco, Sanne Group, and Morneau Shepell.
- Our long-term earnings forecast for our owned companies exceeds 20% per annum.
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