Here’s Why Polen Capital Exited its Position in Malibu Boats (MBUU)

Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -25.81% net of fees compared to a -19.25% return for the Russell 2000 Growth Index. The fund underperformed in the second quarter due to widespread economic slowdown. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the second quarter 2022 investor letter, Polen Capital discussed stocks like Malibu Boats, Inc. (NASDAQ:MBUU). Headquartered in Loudon, Tennessee, Malibu Boats, Inc. (NASDAQ:MBUU) engages in the business of recreational powerboats. On September 30, 2022, Malibu Boats, Inc. (NASDAQ:MBUU) stock closed at $47.99 per share. One-month return of Malibu Boats, Inc. (NASDAQ:MBUU) was -17.85% and its shares lost 33.94% of their value over the last 52 weeks. Malibu Boats, Inc. (NASDAQ:MBUU) has a market capitalization of $978.204 million.

Here is what Polen Capital specifically said about Malibu Boats, Inc. (NASDAQ:MBUU) in its Q2 2022 investor letter:

“On Malibu Boats, Inc. (NASDAQ:MBUU) we are concerned about the considerable demand pull-forward during the pandemic combined with the rise in interest rates and inflationary pressures the consumer is currently facing. The business continues to perform well but we know from past downturns that this is an industry that is more vulnerable to these types of pressures, and that the environment can change quickly. The company’s stock has held up better than most companies in our Portfolio in the YTD period, making it a good source of funds to redeploy into companies with less vulnerability to the changing economic conditions and more compelling risk reward profiles.”

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Malibu Boats, Inc. (NASDAQ:MBUU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Malibu Boats, Inc. (NASDAQ:MBUU) at the end of the second quarter which was 14 in the previous quarter.

We discussed Malibu Boats, Inc. (NASDAQ:MBUU) in another article and shared Polen Capital’s views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.