Candlestick Capital’s Top 5 Stock Holdings

1. The Estée Lauder Companies Inc. (NYSE: EL)

Jack Woodruff has created a big position in The Estée Lauder Companies Inc. (NYSE: EL) during the September quarter and it appears that the hedge fund has benefited from its stake. Shares of the Estée Lauder Companies Inc. (NYSE: EL) grew 11% in the last three months, extending the nine months gains to 45%.

Polen Capital Management, which has generated a return of 9.09% gross of fees from the Polen Global Growth Composite Portfolio for the third quarter, is bullish on the future fundamentals of The Estée Lauder Companies. Here is what Polen Capital Management stated:

“While Estée Lauder also has brick-and-mortar exposure, it has been successfully shifting its business online. In the most recent quarter, online accounted for roughly 40% of sales in both the U.S. and China, with online sales growing swiftly on a large base. Estée Lauder is the global market leader in prestige beauty products, which is a large and growing market. We believe competitive advantages consist of brands and economies of scale, similar in concept and execution to Nike and Adidas. Global cosmetics companies, and Estée Lauder in particular, have been pulling away from the “also-rans” as a result of their scale, global reach, capital, and new omnichannel and social capabilities. Like Nike and Adidas, Estée Lauder successfully executes the flywheel of reinvesting billions of dollars into supporting its brands. Last year, Estée Lauder spent ~$3.5B on advertising and promotion. This equates to ~24% of revenue, which is a hurdle consistently too high for new entrants to clear.”

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