Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. September saw another duration-driven sell-off in equities similar to what the market witnessed in 4Q 2021 and parts of 2022, but Performance for July-August was meaningfully different from September. In the quarter, the fund fell -3.28% and -3.47%, gross and net of fees, roughly in line with the -3.13% and -3.27% returns of the Russell 1000 Growth and S&P 500 indexes, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Polen Focus Growth Strategy highlighted stocks like DocuSign, Inc. (NASDAQ:DOCU) in the third quarter 2023 investor letter. Headquartered in San Francisco, California, DocuSign, Inc. (NASDAQ:DOCU) is an electronic signature solution provider. On November 3, 2023, DocuSign, Inc. (NASDAQ:DOCU) stock closed at $41.09 per share. One-month return of DocuSign, Inc. (NASDAQ:DOCU) was -3.04%, and its shares lost 3.34% of their value over the last 52 weeks. DocuSign, Inc. (NASDAQ:DOCU) has a market capitalization of $8.35 billion.
Polen Focus Growth Strategy made the following comment about DocuSign, Inc. (NASDAQ:DOCU) in its Q3 2023 investor letter:
“We eliminated our remaining 1% position in DocuSign, Inc. (NASDAQ:DOCU). While the company remains the leader by a wide margin at the higher end of the digital signature market, it has become clearer to us that its addressable e-signature market is likely significantly smaller than we had believed or will take much longer to develop than we had anticipated. The lower end of the market is highly competitive. We were patient with our very small position. Impressive new management joined from Google and The Trade Desk in hopes of them being able to reinvigorate growth in core e-signature. Still, it does not appear that this is likely anytime soon with new management articulating that the company will need to develop new products to achieve higher levels of e-signature growth despite what we considered to be low penetration rates within existing e-signature products. As such, we used the proceeds of our sale as part of the funding for our Novo position.”
A software engineer in front of a computer screen, typing code to build the company’s electronic signature software.
DocuSign, Inc. (NASDAQ:DOCU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held DocuSign, Inc. (NASDAQ:DOCU) at the end of second quarter which was 34 in the previous quarter.
We discussed DocuSign, Inc. (NASDAQ:DOCU) in another article and shared the list of tech stocks with biggest upside. In addition, please check out our hedge fund investor letters Q3 2023 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.
