Polen Capital, an investment management company, released its “Polen US SMID Company Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. SMID cap stocks initially rose by more than 10% following November’s U.S. Presidential election, in another volatile quarter. However, they relinquished nearly all of those gains in December, as the U.S. Federal Reserve signaled that interest rate cuts would occur more slowly than anticipated, with reductions expected to start in 2025. Against this backdrop, the fund returned 3.0% gross, and 2.7% net of fees compared to the Russell 2500 Growth Index return of 2.4%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen US SMID Company Growth Strategy highlighted stocks like Insight Enterprises, Inc. (NASDAQ:NSIT), in the fourth quarter 2024 investor letter. Insight Enterprises, Inc. (NASDAQ:NSIT) offers information technology, hardware, software, and services. The one-month return of Insight Enterprises, Inc. (NASDAQ:NSIT) was 13.28%, and its shares lost 5.96% of their value over the last 52 weeks. On January 31, 2024, Insight Enterprises, Inc. (NASDAQ:NSIT) stock closed at $172.75 per share with a market capitalization of $5.487 billion.
Polen US SMID Company Growth Strategy stated the following regarding Insight Enterprises, Inc. (NASDAQ:NSIT) in its Q4 2024 investor letter:
“Insight Enterprises, Inc. (NASDAQ:NSIT) is a global provider of IT solutions to small-and medium-sized businesses across various end markets. Insight has developed capabilities in hardware management and software and services and has demonstrated an impressive long-term track record of double-digit returns on invested capital and robust free cash flow generation. The company has cemented itself as a critical partner to its clients’ digital transformation initiatives. Our research suggests Insight will benefit from a return to normal IT spending levels in the coming years as companies prioritize hardware upgrades and continue to migrate workloads to the cloud. We estimate Insight will compound earnings per share at 18% over the next 5 years, driven by its deep customer relationships and leading cloud services business.”
A professional at a computerscreen, working on a complex hardware solution.
Insight Enterprises, Inc. (NASDAQ:NSIT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Insight Enterprises, Inc. (NASDAQ:NSIT) at the end of the third quarter which was 28 in the previous quarter. Insight Enterprises, Inc.’s (NASDAQ:NSIT) net revenue was $2.1 billion in the third quarter of 2024, down 8% year-over-year in U.S. dollars and also in constant currency. While we acknowledge the potential of Insight Enterprises, Inc. (NASDAQ:NSIT) 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 Insight Enterprises, Inc. (NASDAQ:NSIT) and shared Aristotle SMID Cap Equity Strategy’s views on the company. Polen U.S. Small Company Growth Strategy added Insight Enterprises, Inc. (NASDAQ:NSIT) last quarter, anticipating an 18% EPS compound growth over the next five years. In addition, please check out our hedge fund investor letters Q3 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.