Polen Focus Growth Portfolio Q4 2024 Commentary

2025-01-22 05:20:00 ET

Summary

• The recent Russell 1000 Growth returns are heavily impacted by the "Magnificent 7," now representing 56% of its weight, while the top ten holdings together make up over 60% of the Index.
• In the fourth quarter of 2024, the Polen Focus Growth Portfolio returned 4.88% gross of fees, and 4.65% net of fees.
• In the fourth quarter, we initiated a new position in CoStar Group and did not eliminate any positions.

Summary

Over the past two years, U.S. equities have enjoyed a historic run of performance. As one measure, the Russell 1000 Growth Index (the “Index”) was up +91% cumulatively from 2023-2024, marking the best two-year stretch since the 1987 Index inception. The seven highest two-year returns for the Russell 1000 Growth have come either in the last five years or during the late 1990s technology bubble (roughly 1995-2000).

The recent Russell 1000 Growth returns are heavily impacted by the "Magnificent 7," now representing 56% of its weight, while the top ten holdings together make up over 60% of the Index. While the Magnificent 7 has lived up to its lofty moniker, we've reached a point in the past few quarters where this growth slowed....

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