Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” first quarter 2024 investor letter. A copy of the same can be downloaded here. The US stock market started 2024 optimistically. In the first quarter, the fund returned 8.29% (gross) and 8.09% (net) compared to 11.41% for the Russell 1000 Growth Index and 10.56% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Focus Growth Strategy featured stocks like NIKE, Inc. (NYSE:NKE) in the first quarter 2024 investor letter. Headquartered in Beaverton, Oregon, NIKE, Inc. (NYSE:NKE) designs, develops, and markets athletic footwear, apparel, equipment, and accessories. On April 18, 2024, NIKE, Inc. (NYSE:NKE) stock closed at $95.74 per share. One-month return of NIKE, Inc. (NYSE:NKE) was -5.04%, and its shares lost 23.07% of their value over the last 52 weeks. NIKE, Inc. (NYSE:NKE) has a market capitalization of $144.506 billion.
Polen Focus Growth Strategy stated the following regarding NIKE, Inc. (NYSE:NKE) in its first quarter 2024 investor letter:
“The largest absolute detractors were Adobe, Zoetis, and NIKE, Inc. (NYSE:NKE). Nike has experienced a prolonged period of cost headwinds, offsetting its increasing revenue from direct-to-consumer channels, which would typically enhance its margins. In addition, a gap in new product innovations in recent years has caused earnings growth to stall temporarily. We see these transient headwinds abating, and the company plans to launch several innovations in footwear commensurate with the Paris 2024 Olympics. We believe this should lead to increased revenue growth as cost headwinds abate, thus accelerating earnings growth.
We increased our positions in ThermoFisher Scientific, Visa, Zoetis, Nike, and Abbott Labs. Each of these companies is durable and available at attractive valuations, in our view, for the growth we see ahead. In fact, in the case of ThermoFisher, Nike, and Abbott Labs, we expect accelerating earnings growth in the back half of 2024 after more difficult earnings growth periods pass for each of these companies. Nike will likely be free of transient cost headwinds that have recently held back margin expansion opportunities.”
A close-up of a hand holding a casual sneaker with the Nike logo on it.
NIKE, Inc. (NYSE:NKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, NIKE, Inc. (NYSE:NKE) was held by 69 hedge fund portfolios, same as 69 in the previous quarter, according to our database.
We previously discussed NIKE, Inc. (NYSE:NKE) in another article, where we shared Ensemble Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.
