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- During the second quarter of 2023, the Polen Global Emerging Markets Growth Composite Portfolio (the “Portfolio”) generated a gross return of -1.77% and a net return of -2.02% after fees, underperforming the MSCI Emerging Markets Index (the “Index”), which returned 0.9%.
- The period witnessed significant intra-market volatility, primarily due to China’s weaker-than-expected macroeconomic data and market disappointment with the lack of policy stimulus.
- Dino Polska, Ria Drogasil, and Jeronimo Martins were the top contributors to absolute and relative performance. Conversely, Anta Sports, Tencent, and Momo were the top detractors from absolute returns, with Anta Sports, Momo, and Dlocal the top relative detractors.
- The Portfolio underwent minor adjustments, selling some positions to realign holdings into higher conviction names.
- While acknowledging that short-term share prices may not always reflect business fundamentals, we maintain confidence in our portfolio holdings’ long-term prospects and remain excited about the opportunities in emerging markets.
- Our focus remains on identifying companies with competitive advantages that we believe can generate long-term earnings and cash flow growth, regardless of commodity fluctuations or economic cycles.