4Q2022 – Global SMID Company Growth Commentary

We remain focused on companies that can compound earnings and cash flows over the long term, independent of economic cycles

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  • Over the fourth quarter of 2022, the Polen Global SMID Company Growth Composite Portfolio (the “Portfolio”) returned 10.40% gross and 10.11% net of fees, respectively, versus the 11.11% return of the MSCI ACWI SMID Capitalization Index (the “Index”).
  • Geopolitical uncertainty, persistently high inflation, rising rates, and concerns about slower global growth continued to be the main sources of volatility.
  • The top absolute contributors to the Portfolio’s performance over the fourth quarter included Tecan, CTS Eventim, and Five Below. The most significant absolute detractors from performance included Temenos, Globant, and Paycom.
  • We initiated several new positions in quality businesses, funded by reducing our cash holding and trimming a range of other holdings.
  • We remain focused on the long-term value propositions, competitive advantages, growth opportunities, and potential earnings power of our Portfolio companies.
  • We continue to research and own companies where we believe our flywheel framework is intact and risk-adjusted returns are compelling.

Read the full commentary & disclosures here →