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- Over the second quarter of 2023, the Polen Global SMID Company Growth Composite Portfolio (the “Portfolio”) returned -0.15% gross and -0.26% net of fees, respectively, versus the 3.34% return of the MSCI ACWI SMID Capitalization Index (the “Index”).
- Interest rates and the uncertain trajectory for global economic growth continued to weigh on sentiment, while enthusiasm surrounding generative AI boosted companies exposed to the technology.
- The top contributors to the Portfolio’s relative performance over the first quarter included Dechra Pharmaceuticals, Goosehead Insurance, and Dynatrace. The most significant detractors from performance included Revolve Group, Keyword Studios, and Altus Group.
- We initiated four new positions and sold out of two holdings, largely due to changes in our risk/reward projections.
- We are still focused on our Portfolio companies’ long-term value propositions, competitive advantages, growth opportunities, and potential earnings power.