3Q2020 – U.S. Small Company Growth Commentary

We believe having conviction in the quality of our businesses and a focus on the long-term is paramount to navigating periods of heightened volatility.

  • The Polen U.S. Small Company Growth Composite Portfolio (the “Portfolio”) returned 4.57% gross of fees versus 7.17% for the Russell 2000 Growth Index. Year to date, the Portfolio has returned 21.12% gross of fees versus 3.88% for the Index.
  • In terms of attribution, sector allocation contributed positively while stock selection contributed negatively to our relative performance during the quarter.
  • From a company-specific perspective, Floor & Decor, Globant, and AMN Healthcare Services were the top contributors during the quarter while Appfolio, Goosehead Insurance, and Alarm.com Holdings were the top detractors based on relative contribution to return.
  • During the quarter, we initiated positions in Goosehead Insurance and Malibu Boats, added to our positions in Qualys, Houlihan Lokey, WD40, and Blackline. We exited our positions in EPAM Systems, Five Below, Texas Roadhouse, and LeMaitre Vascular.
  • We believe having conviction in the quality of our businesses and a focus on the long-term is paramount to navigating periods of heightened volatility. While COVID-19 has spurred significant change, we are confident in our portfolio companies’ abilities to meet the challenge.

Read the full commentary here →