Polen Capital, an investment management company, released its “Polen Global Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. Over the past two years, global equities (2023-2024) showed a historic +45% cumulative return as per the MSCI ACWI Index (the “Index”), emphasizing market unpredictability and the futility of macroeconomic projections. The Strategy returned 2.58% gross (2.27% net) in the quarter compared to the MSCI ACW Index’s -0.99% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Polen Global Growth Strategy emphasized stocks such as Paycom Software, Inc. (NYSE:PAYC). Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management solution provider. The one-month return of Paycom Software, Inc. (NYSE:PAYC) was 0.40%, and its shares gained 13.43% of their value over the last 52 weeks. On March 18, 2025, Paycom Software, Inc. (NYSE:PAYC) stock closed at $217.03 per share with a market capitalization of $12.151 billion.
Polen Global Growth Strategy stated the following regarding Paycom Software, Inc. (NYSE:PAYC) in its Q4 2024 investor letter:
“In the fourth quarter, the top relative contributors to the Portfolio’s performance were Shopify, Amazon, and Paycom Software, Inc. (NYSE:PAYC). Paycom Software is a leading cloud-native payroll and human capital management (HCM) software provider. Earlier in the year, we initiated a new position on weakness related to a self-inflicted go-to-market issue whereby the company was a bit heavy-handed migrating customers to its next-generation, self-serve product known as BETI. At the time, we felt this was a temporary issue very much within Paycom’s control, and recent results support this thesis. Notably, the stock was up more than 20% after solid, yet not spectacular, third quarter earnings and encouraging new customer growth, signaling the worst was behind them. We continue to believe Paycom is among the most advantaged software players in the payroll/HCM segment, with a long runway for growth ahead.”
A close-up of two software engineers typing away at laptops in a modern, well-lit office.
Paycom Software, Inc. (NYSE:PAYC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Paycom Software, Inc. (NYSE:PAYC) at the end of the fourth quarter compared to 27 in the third quarter. In the fourth quarter of 2024, Paycom Software, Inc. (NYSE:PAYC) reported $494 million in revenues approximately 14% increase from Q4 2023. While we acknowledge the potential of Paycom Software, Inc. (NYSE:PAYC) 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 Paycom Software, Inc. (NYSE:PAYC) and shared the list of best human resources stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.