We want to own businesses that self-fund and have the flexibility to make thoughtful long-term investments that could make the enterprise stronger.
We focus solely on profitable companies that we believe have durable competitive advantages, self-funding business models, positive cash flow, attractive balance sheets, and favorable liquidity positions.
We prefer to have an allocation to “safety” businesses that we believe will be significantly less impacted during periods of economic stress. These companies often provide ballast during market drawdowns.
Since inception, and for the more than 30 years that we have been executing our investment discipline, we have consistently captured less of the market’s downside during difficult times.
Our active approach to international markets employs Polen Capital’s time-tested guardrails, which steer us clear of investments in highly cyclical corners of the market, like banking and energy.
In the fourth quarter, balance sheets were sound and our portfolio metrics compared favorably to the Russell 2000 Growth universe.
In the fourth quarter, we added to our position in Sanne Group PLC and initiated a position in Technology One.
In the fourth quarter, the Portfolio outperformed the Index and our holdings in the information technology, consumer discretionary, and health care sectors contributed most to Portfolio returns.
In the fourth quarter, markets were strong with stock selections driving the majority of returns.
Equities performed well in the fourth quarter and our top performers were Microsoft, Align Technology, and Facebook.