3Q2022 – U.S. SMID Company Growth Commentary
While the short-term view is uncertain, the long-term picture is far clearer than the market would suggest
Polen U.S. SMID Company Growth
Investment Objective
Our U.S. SMID Company Growth strategy seeks to achieve long-term growth by building a concentrated portfolio of competitively advantaged businesses with sustainable, above-average earnings growth.
Why Invest in Polen U.S. SMID Company Growth?
- U.S. growth strategy with a strong emphasis on sustainable growth
- Focus on companies with high returns on capital and double-digit growth
- Concentrated portfolio of approximately 30 high-quality growth companies
- Low portfolio turnover with long-term holding periods
A High Conviction & Quality Approach
We believe that consistent earnings growth is the primary driver of intrinsic value and long-term stock appreciation. We seek to invest in companies with a durable earnings profile driven by a sustainable competitive advantage, financial strength, sound ESG practices, proven management teams, and powerful products/services. By thinking and investing like a business owner and taking a long-term investment approach, we believe we can preserve capital and provide stability across market cycles.
Product Profile
| Number of holdings | 25-35 |
|---|---|
| Style | Growth |
| Benchmark | Russell 2500 Growth |
Expertise in High Quality & Growth Investing
Rayna Lesser Hannaway, CFA
Head of Team, Portfolio Manager & Analyst, Small Company Growth
26 years of experience
Head of Team, Portfolio Manager & Analyst, Small Company Growth
26 years of experience
Related Perspectives
Podcast: Millennial Investing Talks Small Caps with Rayna Lesser Hannaway
How a selective, research-driven approach can help identify mispriced, misunderstood companies in an inefficient space
Beyond Fundamentals: Seeing the Bigger Picture
How we seek to avoid the trap of short-term distractions in pursuit of durable, sustainable growth opportunities
Polen Capital Management, LLC is an independent registered investment advisor.
The Russell 2500TM Index is a market capitalization weighted index that measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It is comprised of 2,500 of the smallest securities in the Russell 3000® Index. The index is maintained by the FTSE Russell, a subsidiary of the London Stock Exchange Group. The volatility and other material characteristics of the indices referenced may be materially different from the performance achieved by an individual investor. In addition, an investor’s holdings may be materially different from those within the index. Indices are unmanaged and one cannot invest directly in an index.
ESG refers to Environmental, Social, and Governance criteria. The U.S. SMID Company Growth strategy integrates material environmental, social, and governance (ESG) factors into research analysis as part of a comprehensive evaluation of a company’s long-term financial sustainability. There is a risk that the investment techniques and risk analyses applied, including but not limited to the integration of ESG factors into the research analysis, will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available. There is no guarantee that the investment objective will be achieved.
