2Q2022 – U.S. SMID Company Growth Commentary

Our North Star is to remain focused on long-term intrinsic value creation and act with the conviction of our disciplined research process

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  • In the second quarter, the Polen U.S. SMID Company Growth Composite Portfolio (the “Portfolio”) returned -28.26% gross and -28.35% net of fees, respectively, underperforming the -19.55% return of the Russell 2500 Growth Index (the “Index”).
  • The top absolute contributors to the Portfolio’s performance in the second quarter were Aspen Technology and Hamilton Lane.  The most significant absolute detractors from performance were Revolve Group, Inc., Warby Parker, and Globant.
  • One of the key tenets of our Flywheel investment criteria is identifying businesses with strong balance sheets that can self-fund growth. We believe the underlying health of our businesses remains robust, even amidst a worsening economic outlook.
  • With a long-term view, we believe opportunities in our investment universe are better than they have been in several years and offer attractive prospects for long-term investors.

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