The Portfolio is on pace for better than 20% earnings per share growth in 2023
Q2 Fireside Chat with Focus Growth’s Dan Davidowitz
Quarter-end update discussing factors that impacted the Focus Growth Portfolio & what Dan Davidowitz sees as long-term opportunities ahead
In this mid-year webinar, Polen Focus Growth Portfolio Manager Dan Davidowitz dives into the most recent quarter. He covers the factors that impacted the Focus Growth Portfolio, major market themes like narrow leadership and AI, and what he sees as long-term investment opportunities ahead.
Webinar Q&A Highlights
- Review of year-to-date absolute and relative performance of Focus Growth (0:27)
- Narrow market leadership and drivers of returns: fundamentals factors or not? (2:10)
- How does the Russell 1000’s concentrated growth affect Focus Growth portfolio construction? (3:34)
- For over 35 years, we’ve always tried to generate earnings growth from our portfolio (5:24)
- What is the potential impact of AI to the Focus Growth portfolio? (8:57)
- The reality is that most companies don’t know what they want to do with AI (11:31)
- How we view the risks and rewards with NVIDIA, which we currently don’t own (12:41)
- Why we believe companies in our portfolio like Microsoft and Adobe will be AI beneficiaries (16:27)
- Our larger position in PayPal and why we believe it’s positioned for innovation and growth (19:06)
- Why Workday reflects Polen’s investment process (23:28)
- Rationale for our trimmed position size on Amazon (26:04)
- Why we would consider buying Meta again, despite selling in 2022 (31:29)
- Are there any risks to Polen’s portfolio given today’s regulatory environment and M&A scrutiny? (34:28)
- Thoughts on DocuSign considering the market slowdown for digital signatures (42:46)
- Factors contributing to our optimistic outlook for 2H 2023 (44:45)
- Views on Apple’s growth and valuation challenges (48:11)
- Key takeaways & closing comments (53:38)
We’re seeing re-acceleration in earnings growth from a lot of our companies , and not seeing the same multiple compression that we were seeing before. We’re optimistic about where things can go from here.
—Dan Davidowitz, CFA & Focus Growth Portfolio Manager
This is being provided for informational purposes only. Opinions and views expressed constitute the judgment of Polen Capital as of July 27, 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.
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].