Polen Perspectives: Portfolio Manager Roundtable

Watch as portfolio managers from across Polen Capital share their perspectives on the challenges faced & the opportunities ahead for equities & fixed income

2022 was a challenging year for both equities and fixed income. In a candid conversation with clients, portfolio managers from across Polen Capital address concerns about the impact of inflation, how our growth style of investing performs through different cycles, and where they see opportunities in both developed and emerging markets.

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Featured Panelists

  • Damon Ficklin, Large Company Growth Head of Team, Portfolio Manager & Analyst
  • Dave Breazzano, U.S. High Yield, Head of Team, Portfolio Manager
  • Damian Bird CFA, Emerging Markets Growth Head of Team, Portfolio Manager & Analyst

Roundtable Q&A Highlights

  • Opening introduction (0:09)
  • Observations on downside protection & the role of quality growth in our equity portfolios (1:40)

The silver lining is that our quality growth portfolios are much more reasonably valued as they continue to deliver strong earnings.

—Damon Ficklin, head of Polen’s Large Company Growth Team

  • Polen’s approach to high yield investing & how rising rates impact our business selection process (4:53)
  • Equity valuations & where we see earnings growth potential in emerging markets, including China (15:01)

Given valuations, we think the reward opportunities more than make up for the unique risks presented in Chinese markets.

—Damian Bird CFA, head of Polen’s Emerging Markets Growth Team

  • Thoughts on normalized inflation, short v. long-term risk duration & structural growth opportunities (23:24)
  • Insight into the Polen high yield team’s framework for managing liquidity & portfolio rebalancing (29:36)
  • Narrowing the CCC-rated bond universe when volatility rises & defaults have the potential to increase (31:57)

We’re selecting a small portion of the CCC universe that has historically performed very well relative to its cohort.

—David Breazzano, head of Polen’s High Yield Team

  • How country & currency factor into Polen’s global equity investments & emerging markets exposure (37:59)
  • Diving into the technology sector’s recent share price performance & growth rates post-pandemic (44:55)
  • Closing remarks (50:23)

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Important Disclosures
This is being provided for informational purposes only. Opinions and views expressed constitute the judgment of Polen Capital as of February 10, 2023, 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.

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].

- Polen POV

A reminder for the unemotional, patient investor that “fair prices” for high-quality businesses can occasionally become “wonderful prices”