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

Global Equity, SMID Cap

Polen Global 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 9/30/2021 include:

Yeti is a widely recognized and respected leading outdoor lifestyle brand. Its products are renowned for performance and quality and garner a premium price versus competing products. It thoughtfully protects the authenticity of its brand, while also investing to grow into new geographies, sales channels, and product innovations. We think Yeti’s shift to an increasingly direct-to-consumer model will drive ongoing growth in margins and sales.

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.

Thule, a Swedish manufacturer of sports and outdoor products, benefits from the secular trend toward active and outdoor lifestyles. It is most famous for its automobile roof racks and boxes used by outdoor enthusiasts, where they have the #1 market share in each of its 140 markets. The brand is built on a heritage of quality and user-influenced product innovation that has carried over to adjacent categories, allowing the company to grow faster than the underlying markets.

As the pioneer and first mover in the premium mixer category, Fever-Tree has built a strong brand, expertise, global footprint, and track record that no other premium brand has been able to match. It distributes its mixers in over 70 countries and holds leading market share in the U.S. and U.K. By outsourcing its capital-intensive processes to strategic local partners, it can use the resulting high margins and cash flow to reinvest in growth opportunities.

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.