Going beyond with the Polen Small Company Growth Team

Our Small Company Growth strategies are driven by the concept of disruption with discipline. We believe that in order to capitalize on the opportunity set in the small- and mid-cap categories, we must employ a thoughtful approach to investing by looking to the long-term and structuring our portfolios with innovative companies we view as well-positioned for the future.

Core to our philosophy, we target companies that strategically invest in culture, talent, organizational agility and innovation that have the potential to achieve long-lasting success. By seeking disruptive business models through a highly-disciplined process, we are able to create concentrated portfolios of our “best-idea” companies that we believe can stand the test of time.

Expertise, Experience & Analysis

The Polen Small Company Growth team is comprised of seasoned analysts who utilize a team-based selection process that focuses on close collaboration to research and identify opportunities that we believe are primed for longevity and success in their investment space.

Located: Boston, MA
Head of Team: Tucker Walsh, Portfolio Manager & Analyst
Average Team Member Experience: 16 years

Our Investment Philosophy

  • Concentrated Portfolio: High Active Share + Best Ideas
  • Risk Management: Durable Business + Sustainable Competitive Advantage
  • Hold Period: Long-Term Time Arbitrage
  • Outcome Orientation: Absolute Return Mentality

We seek companies that offer infinite opportunities through long-term compounding, and believe this combined with our collaborative, team-based approach can provide great advantages for our clients.

—Tucker Walsh, Head of Team, Portfolio Manager & Analyst

Polen Small Company Growth Strategies

U.S. Equity, Small Cap

Polen U.S. Small Company Growth

Number of holdings: 25-35

U.S. Equity, SMID Cap

Polen U.S. SMID Company Growth

Number of holdings: 25-35

International Equity, Small Cap

Polen International Small Company Growth

Number of holdings: 25-35

Our Strategic Approach

Polen Small Company Growth Stock Selection Process

Our Small Company Growth Team selects stocks through a distinctive Flywheel approach, focused on identifying investments that display a specific set of strategic elements that we consider essential to long-term value generation. Each company we assess endures a rigorous research process, and we must believe they meet all five flywheel criteria to be chosen as an investment.

 

Small Company Growth Flywheel Framework Explained (PDF) →

The Polen Small Company strategies typically hold 25 to 35 companies that the team feels are the highest-quality growth names. Examples as of 6/30/2021 include:

Simulations Plus is a global leader in innovative modeling and simulation software and consulting services to the pharmaceutical and biotechnology industry. Its products are designed to improve the cost, speed, and success rate of drugs brought to market. It currently has highly repeatable sales, with software renewal rates in the mid-90s.

Duck Creek Technologies is a SaaS provider of core systems software for the Property & Casualty insurance industry. Core systems software power some of the carriers’ most critical operations, and we believe Duck Creek has few real competitors. We believe we are in the early stages of a multi-decade adoption cycle of Duck Creek’s solutions in a global market.

Smaregi is a Japanese provider of innovative, cloud-based point-of-sale systems to midsized retailors, an underserved market. Through its low-priced, high-functionality solutions, Smaregi seeks to offer its customers efficiency, key insights, data, and analytics. Smaregi is currently benefitting from and helping to lead the secular shift towards cashless payments amongst smaller Japanese businesses.

Recent Small Company Growth Perspectives

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A Collaborative & Research Driven Team

Polen Capital Management, LLC is an independent registered investment advisor.

The information is provided for illustrative purposes only. Opinions and views expressed constitute the judgment of Polen Capital as of the period indicated , may involve a number of assumptions and estimates which are not guaranteed, and are subject to change without update. 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 update, 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. This information does not identify all the risks (direct or indirect) or other considerations which might be material to you when entering any financial transaction.

Holdings are subject to change. The holdings, as well as other data, are as of the period indicated and should not be considered as a recommendation to purchase, hold or sell any particular security. There is no assurance that any of the securities noted will remain in a portfolio at the time you review this information. Actual holding and percentage allocation in individual client portfolios may vary and are subject to change. The securities discussed do not necessarily represent the entire portfolio. It should not be assumed that any of the holdings discussed were or will prove to be profitable or that the investment recommendations or decisions we make in the future will be profitable. A list of all securities held in this portfolio in the prior year is available upon request. Past performance does not guarantee future results and profitable results cannot be guaranteed.