3Q2020 – International Small Company Growth Commentary

Agility matters in a crisis because periods of disruption, by their definition, force change.

  • During the third quarter of 2020, the Polen International Small Company Growth Composite Portfolio (the “Portfolio”) returned 12.42% gross of fees versus 10.50% for the MSCI ACWI ex-USA Small Capitalization (the “Index”). The Portfolio outperformed the Index by a 1.92% margin. Year to date, Portfolio outperformance stands at 14.52% gross of fees.
  • In the third quarter, we initiated a position in CellaVision and Benefit One. We sold our positions in CAE and Computershare.
  • During this unusual period, we have gained incremental information on companies that otherwise would not be available. Management teams have been stress-tested, business models pushed to extremes, and companies have had to prove their agility.
  • In our view, seeing companies in action when the world appears to be upside down is the best way to deeply understand a company’s potential greatness.
  • While the macro environment remains uncertain, we remain focused on our core competency. By applying our time-tested investment approach to the international small-cap universe, one of the least efficient categories in equity markets, we feel we can deliver compelling returns for our clients over the long-term.

Read the full commentary here →