1Q2019 – Focus Growth Commentary

  • During the first quarter of 2019, the Polen Focus Growth Composite Portfolio (the “Portfolio”) returned 17.13% gross of fees compared to 16.11% for the Russell 1000 Growth Index and 13.65% for the S&P 500. Every single holding in the Portfolio posted a positive return in the quarter and nearly all of them posted double-digit total returns in the
    quarter.
  •  Broad market indices snapped back after declining sharply in the fourth quarter of 2018. It appears the Federal Reserve’s “patience” on raising interest rates has been a primary driver of improved investor sentiment despite a significant slowing in corporate earnings growth.
  • Our Information Technology holdings led returns in the quarter as did some of our biggest fourth quarter detractors, Align and Facebook, both of which we recently added to as our long-term positive view on both companies outweighs the short-term headwinds we see.
  • The Portfolio outperformed during both the market drawdown in the fourth quarter of 2018 and the rally in the first quarter of 2019 by maintaining our disciplined strategy of long-term holdings in financially superior, competitively advantaged businesses.

Read the full article here.