Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund delivered -8.55% gross and -8.67% net of fees compared to a -2.92% return for the Russell 2000 Growth Index and a -1.41% return for the S&P SmallCap 600 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen U.S. Small Company Growth Strategy highlighted stocks like Alight, Inc. (NYSE:ALIT), in the second quarter 2024 investor letter. Alight, Inc. (NYSE:ALIT) cloud-based integrated digital human capital and business solutions provider. The one-month return of Alight, Inc. (NYSE:ALIT) was 6.62%, and its shares lost 11.46% of their value over the last 52 weeks. On July 31, 2024, Alight, Inc. (NYSE:ALIT) stock closed at $7.57 per share with a market capitalization of $4.278 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Alight, Inc. (NYSE:ALIT) in its Q2 2024 investor letter:
“Alight, Inc. (NYSE:ALIT) is a benefits administration outsourcing business serving large enterprise companies, including 70% of the Fortune 100.3 Based on our analysis, the core business is a stable, low-churn, and generally sticky business, albeit more slowly growing. That said, over the last several years, this has evolved as the company has adopted a faster-growing software-enabled cloud strategy. Overall, we think the business is performing well despite headwinds from slower demand given the macro environment uncertainty. Earlier this year, the company announced the decision to sell its payroll and professional services business. While initially well received by the markets, this has ultimately created some uncertainty about the profile and growth of the core business. We trimmed our position while we continue to review the investment.”
A person viewing their financial progress on a computer, highlighting the financial health offerings of the company.
Alight, Inc. (NYSE:ALIT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Alight, Inc. (NYSE:ALIT) at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the potential of Alight, Inc. (NYSE:ALIT) 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 Alight, Inc. (NYSE:ALIT) and shared the list of stocks targeted by activist investors. 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.
