Here’s Why Polen Capital Reduced its Goosehead Insurance (GSHD) Position

Polen Capital, an investment management firm, published its “Polen U.S. Small Company Growth” fourth quarter 2021 investor letter – a copy of which can be downloaded here. For the fourth quarter, the Polen U.S. Small Company Growth Composite Portfolio (the “Portfolio”) returned 1.59% gross and 1.34% net of fees, outperforming the 0.01% return for the Russell 2000 Growth Index (the “Index”). The Portfolio also produced solid results over the full year, on both an absolute basis and relative to the Index return of 2.83%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Polen U.S. Small Company Growth Fund, in its Q4 2021 investor letter, mentioned Goosehead Insurance, Inc (NASDAQ:GSHD) and discussed its stance on the firm. Founded in 2003, Goosehead Insurance, Inc. (NASDAQ:GSHD) is a Westlake, Texas-based insurance company with a $2.4 billion market capitalization, and is currently spearheaded by its CEO, Mark E. Jones. Goosehead Insurance, Inc (NASDAQ:GSHD) delivered a -44.63% return since the beginning of the year, while its 12-month returns are down by -45.18%. The stock closed at $66.62 per share on March 11, 2022.

Here is what Polen U.S. Small Company Growth Fund has to say about Goosehead Insurance, Inc in its Q4 2021 investor letter:

“All our Portfolio companies, detractors included, are delivering on our long-term expectations and continue to have compelling growth prospects… We also reduced our position in Goosehead Insurance. This was purely a risk management decision, as we are still very positive on each company and its prospects.”

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Our calculations show that Goosehead Insurance, Inc (NASDAQ:GSHD) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Goosehead Insurance, Inc (NASDAQ:GSHD) was in 17 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 13 funds in the previous quarter. Goosehead Insurance, Inc (NASDAQ:GSHD) delivered a -46.19% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on Goosehead Insurance, Inc (NASDAQ:GSHD) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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