Volatile market in the third quarter: Polen Capital relies on growth strategies

The investment company Polen Capital recently published its investor letter for the "Polen Focus Growth Strategy" for the third quarter of 2024. Despite a volatile market environment, the fund achieved a gross return of 3.21% and a net return of 2.99%, compared to the Russell 1000 Growth Index at 3.19% and the S&P 500 Index at 5.89%. The letter provides exciting insights into the fund's top investments for the year 2024. One of the highlighted stocks in the third quarter was Workday, a provider of cloud-based enterprise solutions. The stock recorded a monthly gain of 7.89% and achieved a value increase of 13.65% over the past year. On November 11, 2024, the stock closed at a price of USD 264.15 with a market capitalization of USD 70 billion. In addition to Workday, Polen Capital invested in other established positions such as Adobe, Shopify, MSCI, and Paycom Software. The focus is on the potential increase in Workday’s profit margins over the next five years, a move welcomed by Polen Capital. Workday is not among the 31 most popular stocks with hedge funds. Data shows that 86 hedge funds held Workday in their portfolios, three more than in the previous quarter. Nevertheless, there is a belief that AI stocks offer greater and faster return opportunities. For investors searching for affordable and promising AI stocks, a new report offers interesting recommendations. Another topic in the report was Jefferies' assessment that Workday represents one of the leading long-term software investments among institutional investors, although a lower revenue growth forecast has recently impacted the performance of the Polen Global Growth Strategy.