Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter had a strong finish for U.S. small-cap equities, driven by interest rate reductions and fading recessionary concerns. In the third quarter, the fund delivered 7.65% gross, and 7.35% net of fees compared to an 8.41% return for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen U.S. Small Company Growth Strategy highlighted stocks like Alarm.com Holdings, Inc. (NASDAQ:ALRM), in the third quarter 2024 investor letter. Alarm.com Holdings, Inc. (NASDAQ:ALRM) is a company that offers various Internet of Things (IoT) and solutions. The one-month return of Alarm.com Holdings, Inc. (NASDAQ:ALRM) was 11.56%, and its shares gained 1.77% of their value over the last 52 weeks. On November 15, 2024, Alarm.com Holdings, Inc. (NASDAQ:ALRM) stock closed at $59.85 per share with a market capitalization of $2.958 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Alarm.com Holdings, Inc. (NASDAQ:ALRM) in its Q3 2024 investor letter:
“The Portfolio’s top detractors were Progyny, elf Beauty, and Alarm.com Holdings, Inc. (NASDAQ:ALRM). Alarm.com is a technology company providing cloud-based services for remote control, home automation, and residential and commercial security systems monitoring. The company delivered better-than-expected results, in our view, but shares declined due to its reduced full-year earnings forecast. Alarm.com continues to execute well amidst a soft residential security market. Reduced new installation activity has been offset by higher retention and contributions from recent growth initiatives.”
A view of a control room with video screens monitoring multiple sites through intelligent automation.
Alarm.com Holdings, Inc. (NASDAQ:ALRM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Alarm.com Holdings, Inc. (NASDAQ:ALRM) at the end of the second quarter which was 29 in the previous quarter. While we acknowledge the potential of Alarm.com Holdings, Inc. (NASDAQ:ALRM) 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 Alarm.com Holdings, Inc. (NASDAQ:ALRM) and shared Diamond Hill Long-Short Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.