CEVMF - Polen Global SMID Company Growth Q4 2023 Portfolio Manager Commentary

2024-02-23 00:10:00 ET

Summary

• Over the fourth quarter of 2023, the Polen Global SMID Company Growth Composite Portfolio (the “Portfolio”) returned 10.04% gross and 9.92 % net of fees, respectively, versus the 11.63% return of the MSCI ACWI SMID Capitalization Index (the “Index”).
• The top contributors to the Portfolio’s performance, on both a relative and absolute basis, over the fourth quarter were Five Below, Shift, and CTS Eventim.
• The most significant detractors from performance, on both a relative and absolute basis, were XPEL, Paycom Software, and CCC Intelligent Solutions.

Takeaways

• Over the fourth quarter of 2023, the Polen Global SMID Company Growth Composite Portfolio (the “Portfolio”) returned 10.04% gross and 9.92 % net of fees, respectively, versus the 11.63% return of the MSCI ACWI SMID Capitalization Index (the “Index”).
• Optimism over cooling inflation and a shift in interest rate policy boosted sentiment.
• The top contributors to the Portfolio’s performance, on both a relative and absolute basis, over the fourth quarter were Five Below ( FIVE ), Shift ( SFTGQ ), and CTS Eventim ( CEVMF ).

• The most significant detractors from performance, on both a relative and absolute basis, were XPEL ( XPEL ), Paycom Software ( PAYC ), and CCC Intelligent Solutions ( CCCS ).

• Portfolio turnover was well above normal, reflecting a restructuring of the strategy.
• We remain focused on our portfolio companies' long-term value propositions, competitive advantages, growth opportunities, and potential earnings power.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Periods over one-year are annualized. Performance figures are presented gross and net of fees and have been calculated after the deduction of all transaction costs and commissions, and include the reinvestment of all income. Please reference the GIPS Report which accompanies this commentary. The commentary is not intended as a guarantee of profitable outcomes. Any forward-looking statements are based on certain expectations and assumptions that are susceptible to changes in circumstances. Opinions and views expressed constitute the judgment of Polen Capital as of the date herein, may involve a number of assumptions and estimates which are not guaranteed, and are subject to change. All company-specific information has been sourced from company financials as of the relevant period discussed. ...

For further details see: