Rayna Lesser Hannaway, head of Polen’s Small Company Growth Team, recently sat down with Barron’s to discuss small cap investing. She shared her perspective on what distinguishes winners from losers and outlined some attractive opportunities she perceives now in the consumer discretionary space.
- Over her 25+ years as a small cap investor, Rayna has observed diverse market cycles. She covered Amazon and Netflix when they were small and has also seen plenty of companies fail along the way.
- Rayna explains why a concentrated, selective approach is essential to construct a high-quality portfolio and outlines the specific criteria her team seeks for their investments. She points out that small cap leaders can often prove more agile and resilient than their larger counterparts during an economic downturn.
- Yeti, Five Below, and Etsy1 are three examples of compelling, consumer-focused companies that Rayna and her team have studied closely.
We look for companies with durable competitive advantages, operating in industries that lend themselves to competitive advantages. We also want these companies to be leaders in what they do, and solve a real customer problem.
—Rayna Lesser Hannaway, Head of Team, Portfolio Manager & Analyst, Small Company Growth
1Yeti and Five Below are holdings in Polen’s U.S. Small Company Growth, U.S. SMID Company Growth, and Global SMID portfolios as of March 31, 2023. Etsy is a holding in Polen’s U.S. SMID Company Growth portfolio as of March 31, 2023.
Please note that this document is a condensed summary of the full interview conducted by Barron’s.
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