We know these markets can test the resolve of even the most experienced investment professionals, and we’re here to support you. In this Polen Perspectives webinar, Portfolio Manager & Analyst Dan Davidowitz, CFA shares his observations on the current market environment, how we’re thinking about companies and their growth prospects today and longer term, plus why widening the lens could offer additional perspective in uncertain times.
Webinar Q&A Highlights
- Opening remarks & introduction (0:06)
- Potential impact of rising interest rates & higher inflation on the Polen Focus Growth Portfolio (2:00)
- What’s our view on the earnings outlook for holdings in the broader consumer space? (5:44)
- Possible direct or indirect impact of the war in Ukraine on Polen Focus Growth Portfolio companies (7:17)
- Are there any macro headlines impacting markets today we think cause any genuine concern? (8:44)
- Potential impact of elevated valuations on Polen’s ability to find businesses with attractive multiples (10:44)
- Examples of valuation opportunities & price advantages as a result of volatility in early 2022 (13:20)
- Insight into the current state & potential earnings growth for the Polen Focus Growth Portfolio (15:42)
- Rationale behind our decision to hold sizeable portfolio positions in Meta platforms & Netflix (17:38)
- What’s our view on trends in digital payments given the portfolio exposure to Visa & MasterCard? (25:31)
- Benefits we see from software as a service (SaaS) companies in the Polen Focus Growth Portfolio (31:59)
- How might we expect the portfolio to perform in a recessionary period or stagflation environment? (34:47)
- Possible impact of globalization- the world being “less global”- on Polen’s Focus Growth strategy (37:01)
- Has recent U.S. large-cap equity underperformance changed the dynamic in the space? (40:16)
- As long-term investors, does the top-heavy Russell 1000 Growth Index influence our weightings? (45:42)
- Views on price to earnings (P/E) ratios of Polen Focus Growth companies relative to peers (49:11)
Download The Polen Heat Map: Degrees of Expected Return →
- Our thoughts on a tech-driven fourth Industrial Revolution as a super cycle driving markets (52:17)
- Key takeaway and single most important message we’re sharing with clients as the markets are in flux (54:43)
- Closing remarks & final thoughts (56:55)
We’re laser focused on businesses–competitive advantages, growth opportunities & ability to generate returns–in any environment.
—Dan Davidowitz, CFA & Portfolio Manager
This is being provided for informational purposes only. Opinions and views expressed constitute the judgment of Polen Capital as of March 24, 2022, may involve a number of assumptions and estimates which are not guaranteed, and are subject to change without notice. Although the information and any opinions or views given have been obtained from or based on sources believed to be reliable, no warranty or representation is made as to their correctness, completeness, or accuracy. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice, including any forward-looking estimates or statements which are based on certain expectations and assumptions. The views and strategies described may not be suitable for all clients. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations. This document does not identify all the risks (direct or indirect) or other considerations which might be material when entering any financial transaction.
Past performance is not indicative of future results and profitable results cannot be guaranteed. This information should not be construed as a recommendation to purchase, hold, or sell any particular security. Specific securities described may or may not be held in portfolios managed by Polen Capital. There is no assurance that any securities discussed herein will be in the portfolio at the time you review this video or that any securities sold have not been repurchased. The securities discussed do not necessarily represent the entire portfolio. It should not be assumed that any of the securities, transactions or holdings discussed were or will prove to be profitable or that any investment recommendations we make in the future will equal the investment performance of the securities discussed herein. For a complete list of Polen Capital’s past specific recommendations for the last year, please contact [email protected].
The volatility and other material characteristics of the indices referenced may be materially different from the performance achieved by an individual investor. In addition, an investor’s holdings may be materially different from those within the index. Indices are unmanaged and one cannot invest directly in an index.
The Russell 1000® Growth Index is a market capitalization weighted index that measures the performance of the large-cap growth segment of the U.S. equity universe. It includes Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. The index is maintained by the FTSE Russell, a subsidiary of the London Stock Exchange Group.