Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund delivered 10.46% gross and 10.22% net of fees compared to a 12.75% return for the Russell 2000 Growth Index. The firm views the performance in many respects as evidence of the stability of its investment approach in the face of frequent and significant market swings. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Polen U.S. Small Company Growth Strategy featured stocks such as Fox Factory Holding Corp. (NASDAQ:FOXF) in the fourth quarter 2023 investor letter. Headquartered in Duluth, Georgia, Fox Factory Holding Corp. (NASDAQ:FOXF) is a ride dynamics products manufacturer. On February 20, 2024, Fox Factory Holding Corp. (NASDAQ:FOXF) stock closed at $65.54 per share. One-month return of Fox Factory Holding Corp. (NASDAQ:FOXF) was 3.12%, and its shares lost 45.52% of their value over the last 52 weeks. Fox Factory Holding Corp. (NASDAQ:FOXF) has a market capitalization of $2.778 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Fox Factory Holding Corp. (NASDAQ:FOXF) in its fourth quarter 2023 investor letter:
“Fox Factory Holding Corp. (NASDAQ:FOXF) is a maker of high-performance suspension products used in power vehicles and specialty sports products (mountain bikes, etc.) The stock experienced some headwinds in the quarter related to a reset in the bicycle shocks business following above-average demand and supply constraints during COVID, production shutdowns from the UAW strike, and the announcement of a $572 million acquisition that was met with some skepticism from investors.
In each instance, we believe these to be temporary issues that have resulted in an unwarranted outsized negative reaction in the share price in the near-term. The reset in the bike business—while happening faster than anticipated—has been well-telegraphed by management and does not change our long-term view on that segment. The UAW strike is now over, and production has resumed. And finally, on the Marucci acquisition, we had the opportunity to discuss this in detail with management and now have a deeper understanding of the strategic rationale in the broader context of the company’s growth strategy. Our conviction is unchanged as it relates to the company’s long-term strategic vision, ability to navigate and overcome short-term challenges, and the expected positive trajectory once these temporary headwinds subside.”
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Fox Factory Holding Corp. (NASDAQ:FOXF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Fox Factory Holding Corp. (NASDAQ:FOXF) was held by 22 hedge fund portfolios, up from 14 in the previous quarter, according to our database.
We discussed Fox Factory Holding Corp. (NASDAQ:FOXF) in another article and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.
