Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned -0.11% (gross) and -0.31% (net) compared to 8.33% for the Russell 1000 Growth Index and 4.28% for the S&P 500 Index. Generative AI (GenAI) remains the dominant market narrative in the second quarter. The portfolio does not own NVIDIA or other Semiconductor companies that are presently benefitting from the demand for AI hardware. However, with the portfolio’s extensive investment in software and IT services, the firm anticipates that GenAI’s long-term economic gains will go to these industries. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Focus Growth Strategy highlighted stocks like Accenture plc (NYSE:ACN), in the second quarter 2024 investor letter. Accenture plc (NYSE:ACN) is a professional services company. The one-month return of Accenture plc (NYSE:ACN) was 7.15%, and its shares gained 5.08% of their value over the last 52 weeks. On July 19, 2024, Accenture plc (NYSE:ACN) stock closed at $329.19 per share with a market capitalization of $206.199 billion.
Polen Focus Growth Strategy stated the following regarding Accenture plc (NYSE:ACN) in its Q2 2024 investor letter:
“Autodesk and Accenture plc (NYSE:ACN) were also notable absolute detractors in the quarter. For Accenture, the past year has proven to be a weak backdrop for the IT services industry as enterprises rationalize their IT budgets and defer spending on discretionary, shorter-cycle deals. Accenture has not been immune to this broader weakness, as evidenced by slowing growth in recent quarters. However, we would note that later in the quarter, the stock responded very positively to results that showcased AI bookings growing rapidly, though still a small portion of overall bookings. Additionally, as we head into 2025, growth comparisons should ease considerably.”
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Accenture plc (NYSE:ACN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the first quarter which was 58 in the previous quarter. Accenture plc’s (NYSE:ACN) revenues for the third quarter of fiscal 2024 were $16.5 billion, a 1% decline in US dollars. While we acknowledge the potential of Accenture plc (NYSE:ACN) 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 Accenture plc (NYSE:ACN) and shared Aristotle Capital International Equity Strategy’s views on the company. 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.
