- During the third quarter of 2020, the Polen Focus Growth Composite Portfolio (the “Portfolio”) returned 10.15% gross of fees versus 13.22% for the Russell 1000 Growth Index (the Index”) and 8.93% for the S&P 500. Year to date, the Portfolio has returned 22.25% gross of fees versus 24.33% for the Russell 1000 Growth and 5.57% for the S&P 500.
- The U.S. election is just around the corner, and while the outcome is uncertain, we believe the operating environment for our businesses over the long run is unlikely to change materially.
- Valuations in the U.S. equity market continued to climb in the third quarter. While we feel comfortable with the businesses we own and their valuations, we have seen some ebullient behavior in certain companies that gives us pause.
- Gambling-like behavior in the market should give anyone pause in our view, and we are remaining conservative in our estimates of future earnings growth and the prices we are willing to pay.
- In the third quarter, we initiated new positions in UnitedHealth Group and Intuitive Surgical and eliminated our position in ADP. We also trimmed our positions in MSCI, ServiceNow, PayPal, Align Technology, and Microsoft.
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