2Q2020 – U.S. Small Company Growth Commentary

By owning approximately 30 of what we believe are the best companies in our category, we feel our strategy is well positioned to protect capital and to participate when the market rebounds.

  • During the second quarter of 2020, the Polen U.S. Small Company Growth Composite Portfolio (the “Portfolio”) returned 46.14% gross of fees versus 30.58% for the Russell 2000 Growth Index (the “Index”). Year to date, the Portfolio has returned 15.83% versus -3.07% for the Russell 2000 Growth Index.
  • The second quarter of 2020 showed a striking reversal in the market from the rapid sell-off in the first quarter. The strategy’s quarter and year-to-date relative results are consistent with what we would expect to see in volatile markets based on our investment philosophy and objective.
  • By owning approximately 30 of what we believe are the best companies in our category, we feel our strategy is well positioned to protect capital and to participate when the market rebounds.
  • The outlook is uncertain and likely to remain that way for some time given the ongoing risk from COVID-19. Regardless, we think companies that can navigate this period and maneuver into a position of strength will exhibit positive results and will likely continue to separate themselves from competitors as we go through 2020 and beyond. We believe we own these types of businesses.

Read the full commentary here →