- During the second quarter of 2018, the Polen U.S. Small Company Growth Composite Portfolio (the “Portfolio”) returned 8.82% gross of fees. The Russell 2000 Growth Index (the “Index”) returned 7.24%. For the trailing one year, the Portfolio returned 24.77% gross of fees versus 21.87% for the Index.
- We believe our portfolio remains very healthy with average sales growth of 19.8% and average return on invested capital of 18.4% for the trailing twelve-month period, and average total debt as a percentage of total capital of 20% as of the end of the second quarter. In our opinion, these metrics show that our companies are doing an admirable job of efficiently growing sales while driving considerable shareholder value without a heavy reliance on outside sources of capital. This is consistent with our long-term investment approach that focuses on the highest-quality companies with strong balance sheets, above-average growth and profitability, and what we believe are enduring competitive advantages.
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