Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth Strategy” second-quarter 2024 investor letter. A copy of the same can be downloaded here. The portfolio returned -8.42% gross and -8.71% net of fees in the second quarter compared to a -4.22% return for the Russell 2500 Growth Index. In the second quarter, there was a shift from lower-quality, high-priced stocks to a more cautious approach due to concerns about high inflation. This led to a widening performance gap between small and mid-sized and large company stocks, as investors turned to lower-volatility sectors. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen U.S. SMID Company Growth Strategy highlighted stocks like SiTime Corporation (NASDAQ:SITM), in the second quarter 2024 investor letter. SiTime Corporation (NASDAQ:SITM) is a silicon timing systems solutions provider. The one-month return of SiTime Corporation (NASDAQ:SITM) was 12.43%, and its shares gained 7.89% of their value over the last 52 weeks. On July 29, 2024, SiTime Corporation (NASDAQ:SITM) stock closed at $144.18 per share with a market capitalization of $3.298 billion.
Polen U.S. SMID Company Growth Strategy stated the following regarding SiTime Corporation (NASDAQ:SITM) in its Q2 2024 investor letter:
“SiTime Corporation (NASDAQ:SITM) is a semiconductor company that pioneered the use of silicon micro-electromechanical systems for precision timing. Inventory destocking has impacted the company over the last 12- 18 months, a primary factor leading to the stock’s volatility. Based on our analysis, amid weak results, the business’ trajectory seems to have improved, and management’s comments have been encouraging. While we continue to believe SiTime is a structurally advantaged business with a long growth runway, we took advantage of the stock’s significant appreciation over a brief timeframe and trimmed our position.”
A series of industrial production lines, radiating silicon timing solutions to the world.
SiTime Corporation (NASDAQ:SITM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held SiTime Corporation (NASDAQ:SITM) at the end of the first quarter which was 19 in the previous quarter. The first quarter revenue of SiTime Corporation (NASDAQ:SITM) was $33 million, a 22% decrease from the Q4’s $42.4 million, in line with seasonal trends. While we acknowledge the potential of SiTime Corporation (NASDAQ:SITM) 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.
Polen U.S. SMID Company Growth Strategy established a position in SiTime Corporation (NASDAQ:SITM) in the second quarter of 2023. SiTime Corporation (NASDAQ:SITM) and shared the list of best cloud stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 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.
