1Q2021 – International Small Company Growth Commentary

Regardless of the macro environment or changing preferences of investors, we believe high quality companies that deliver great results will always be in favor long term.

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  • 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.

Read the full commentary & disclosures here →