Polen Capital, an investment management company, released its “Polen Global Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the second quarter, AI remained the dominant narrative in markets. The Strategy returned -1.63% gross (-1.91% net) compared to the MSCI ACW Index’s 2.87% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Global Growth Strategy highlighted stocks like Adobe Inc. (NASDAQ:ADBE), in the second quarter 2024 investor letter. Adobe Inc. (NASDAQ:ADBE) is a diversified software company that operates through Digital Media, Digital Experience, and Publishing and Advertising. The one-month return of Adobe Inc. (NASDAQ:ADBE) was -2.36%, and its shares gained 2.57% of their value over the last 52 weeks. On July 26, 2024, Adobe Inc. (NASDAQ:ADBE) stock closed at $542.44 per share with a market capitalization of $240.518 billion.
Polen Global Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q2 2024 investor letter:
“With Adobe Inc. (NASDAQ:ADBE), in some ways, we see it as a microcosm of the market’s “shoot first, ask questions later” approach to categorizing AI winners and losers. In the early part of last year, Adobe came under pressure with a perception that generative AI (GenAI) would represent a material headwind to their suite of creative offerings. In short order, the company introduced its GenAI offering, Firefly, which shifted the narrative to Adobe as a beneficiary with a real opportunity to monetize GenAI in the near term. Earlier this year, that narrative was again challenged as the company reported a slight slowdown in revenue growth. Results in the most recent quarter were robust as the company raised its full-year forecast across a number of key metrics and showcased better-than-expected results.”
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Adobe Inc. (NASDAQ:ADBE) is in 20th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 108 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the first quarter which was 105 in the previous quarter. Adobe Inc. (NASDAQ:ADBE) generated $5.31 billion in revenue in the quarter, up 11% year-over-year. While we acknowledge the potential of Adobe Inc. (NASDAQ:ADBE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Adobe Inc. (NASDAQ:ADBE) and shared the list of biggest AI stock upgrades and downgrades in July so far. In the last quarter, Polen Capital reduced its holdings in Adobe Inc. (NASDAQ:ADBE). In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
