Expertise & Collaboration
We work closely together to identify investment opportunities we believe are primed for long-term success and build concentrated portfolios of our best ideas.
Located: Boston, MA
Head of Team: Rayna Lesser Hannaway, CFA, Portfolio Manager & Analyst
Average Team Member Experience: 13 years (as of 06-30-2024)
Our Investment Philosophy
Concentrated Portfolio: High Active Share
Risk Management: Durable Businesses
Long Holding/Compounding Period: Time Arbitrage
Outcome Orientation: Absolute Return Mentality
APPROACH
Our Strategic Approach
Polen Small Company Growth Stock Selection Process
Our team uses a distinctive Flywheel approach to select stocks. We focus on companies with specific characteristics we consider essential to long-term value generation. Each business we assess undergoes a rigorous research process and must meet all five of our Flywheel criteria in our view to be chosen as an investment.
Small Company Growth Flywheel Framework Explained
There is no guarantee that companies included in the Portfolio will exhibit all of these qualities.
The Polen Small Company Growth strategies typically hold 25 to 40 companies that the team feels are the highest-quality growth names. Examples as of 06/30/2024 include:
CCC Intelligent Solutions is a provider of software and solutions focused on simplifying the auto insurance claims process. At their core, they aim to make a complex and emotional experience (a car accident) run as smoothly as possible using data analytics and AI. CCC’s customers—insurance carriers and repair shops—navigate a variety of structural headwinds, and CCC seeks to create value for these customers by continually investing in technology and leveraging its vast historical data set. Over time, we believe this approach has resulted in a durable competitive advantage that positions the company well for long term growth.
Dynatrace is a software intelligence platform that helps large organizations monitor and optimize their digital performance across apps and data. With growing digital transformation and cloud modernization, the volume and complexity of data makes it harder for enterprises to manage their technology stack. In our view, the demand for Dynatrace’s solutions is very robust and will continue to be for some time given structural tailwinds.
Fever-Tree, based in the UK, effectively created the premium mixer category. As the first mover in the space, Fever-Tree has built brand equity and expertise, a global footprint, and unique partnerships with well-known premium spirits brands. In our view, their outsourced business model results in high margins and free cash flow generation with ample room to reinvest in new growth opportunities.
An Experienced, Research-Driven Team
We seek companies that offer infinite opportunities through long-term compounding, always in pursuit of great advantages for our clients.
Featured
Recent Perspectives
Thought CapitalAt Polen Capital, we aren't in the business of predicting election outcomes. We are focused on building quality portfolios for the long term.
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.
Active Share: is a measure of the percentage of stock holdings in a manager's portfolio that differs from the benchmark index. "Weighing Machine vs. Voting Machine": In the short term, the market might be swayed by various factors like news and sentiment, and act like a “voting machine” or a popularity contest. Long term, the market will factor in the fundamentals and act like a weighing machine, and primarily reflect the corporate earnings trajectory.