3Q2021 – U.S. Small Company Growth Commentary

The global pandemic cemented permanent behavior changes related to the new digital landscape, which we view as a structural, long-term trend.

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  • Markets were volatile in the third quarter of 2021, reflecting challenges seemingly related to COVID-19 variants, broad-based supply chain issues, the resulting impacts of inflation, and cracks in the Chinese economy.
  • For the third quarter, the Polen U.S. Small Company Growth Composite Portfolio (the ”Portfolio”) returned 1.94% and 1.74% gross and net of fees, outperforming the Russell 2000 Growth Index (the “Index”) return of -5.64%.
  • The top relative contributors during the quarter were Globant, Goosehead Insurance, and Endava. The bottom three relative detractors were Trupanion, Simulations Plus, and Olo.
  • During the quarter, we initiated a position in Olo and sold Euronet Worldwide and Envestnet. We added to Progyny and trimmed Etsy, Revolve, and Paylocity.
  • The direction of interest rates, inflation, and supply chain shortages can drive market volatility over the shorter term. That said, we believe our Portfolio companies are well-positioned to manage through these challenges and become at least two to five times larger over time.

Read the full commentary & disclosures here →