4Q2020 – International Small Company Growth Commentary

We believe that our investment approach is well-positioned to take advantage of the less efficient and relatively underfollowed market for small-cap companies outside the U.S.

  • During the fourth quarter of 2020, the Polen International Small Company Growth Composite Portfolio (the “Portfolio”) returned 9.23% gross of fees versus 18.57% for the MSCI ACWI ex-USA Small Capitalization Index (the “Index”).
  • For the full year, the Portfolio returned 21.10% gross of fees versus the Index return of 14.24%. The Portfolio outperformed by 6.86% gross of fees.
  • We initiated a position in Endava in the fourth quarter.
  • Our estimated long-term earnings forecast for our owned companies is nearly 20% per annum. We believe these are high quality businesses early in their lifecycle with the potential for a long runway of compelling, profitable growth ahead of them.
  • Most importantly, with a two-year downside capture of 68%, we believe we are delivering the downside protection our investors expect.
  • Looking ahead, our pipeline of potential new investments appears promising. We continue to seek out those companies that can capitalize on our rapidly changing world.

Read the full commentary here →