1Q2022 – U.S. SMID Company Growth Commentary

We continue to see an exciting and attractive runway for our Portfolio companies over the long term

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  • A broad-based selling of risk assets, high correlations, and a preference for the types of companies that typically do not meet our investment criteria dominated market behavior during the first quarter of 2022.
  • Over the first quarter, Polen U.S. SMID Company Growth Composite Portfolio (the “Portfolio”) returned -23.81% gross and -23.83% net of fees, respectively, underperforming the -12.30% return of the Russell 2500 Growth Index (the “Index”).
  • The top absolute contributors to the Portfolio’s performance over the first quarter included Aspen Technology, Endava, and Revolve Group. The most significant absolute detractors from performance included Trex Company, Etsy, and RH (formerly Restoration Hardware Holdings, Inc.).
  • While the first quarter’s uncertain and volatile macroeconomic environment could result in slower near-term economic growth, we continue to see an exciting and attractive runway for our Portfolio companies over the long term, particularly in the context of current valuations.

Read the full commentary & disclosures here →