4Q2022 – International Small Company Growth Commentary

We believe that in this environment, the stellar small-cap companies will have a better potential opportunity set for value-added acquisitions

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  • In the fourth quarter, the Polen International Small Company Growth Composite Portfolio (the “Portfolio”) returned 7.44% gross and 7.04% net of fees, respectively, compared to the 13.31% return of the MSCI ACWI ex US Small Cap 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 Fevertree Drinks, Keywords Studios, and CTS Eventim. The most significant absolute detractors from performance included GB Group, Mytheresa, and Temenos.
  • We initiated several new positions in quality businesses, funded by reducing our cash holdings 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 →