Polen Capital, an investment management company, released its “Polen Global SMID Company Growth” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.41 (gross) and 7.40% (net) compared to a 9.37% return for the MSCI ACWI SMID Net Index. Negative stock selection and sector and country allocation led the portfolio to underperform in the quarter. Despite volatile market sentiments, global small and mid-cap equities posted gains in the third quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Global SMID Company Growth highlighted stocks like Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in the Q3 2024 investor letter. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a technology company that develops and provides a Software-as-a-Service (SaaS) solution. The one-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was 17.50%, and its shares gained 47.82% of their value over the last 52 weeks. On November 19, 2024, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $30.82 per share with a market capitalization of $7.617 billion.
Polen Global SMID Company Growth stated the following regarding Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its Q3 2024 investor letter:
“Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a leading provider of investment portfolio reporting and analytics solutions. The stock surged after the company posted second quarter results, reporting record quarterly revenue and operating cash flows, which more than doubled year-over-year. The solid performance can largely be attributed to continued momentum with strong cross-sell execution, further boosting our confidence in company management’s multiproduct expansion strategy. Going forward, we believe Clearwater Analytics is poised to sustain its robust growth trajectory and achieve annual top-line growth of 20% with meaningful margin expansion over our five-year investment horizon.”
A wide shot of a large financial data center.
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of the third quarter which was 20 in the previous quarter. Clearwater Analytics Holdings, Inc.’s (NYSE:CWAN) revenue for the third quarter was $115.8 million, representing a 22.4% year-on-year increase. While we acknowledge the potential of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) 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 Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and shared Oppenheimer’s favorite stocks for the next 12 months and the top stock picks. 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.