Polen Capital, an investment management firm, released its “Polen U.S. Opportunistic High Yield Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. The fund yielded a gross total return of 1.68% in the third quarter, surpassing the ICE BofA U.S. High Yield Index by 115 basis points. The rise in U.S. Treasury yields during Q3 led to a positive duration effect for the representative account of the Polen Credit U.S. Opportunistic High Yield Composite due to its shorter duration compared to the benchmark. Additionally, the portfolio’s income advantage and aggregate restructured private equity holdings had notable impacts on its relative performance. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Polen U.S. Opportunistic High Yield Fund mentioned Uber Technologies, Inc. (NYSE:UBER) and explained its insights for the company. Uber Technologies, Inc. (NYSE:UBER) is a San Francisco, California-based ride-hailing services, food delivery, and freight transport provider with a $106.1 billion market capitalization. Uber Technologies, Inc. (NYSE:UBER) delivered a 108.57% return since the beginning of the year, while its 12-month returns are up by 77.43%. The stock closed at $51.58 per share on November 9, 2023.
Here is what Polen U.S. Opportunistic High Yield Fund has to say about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2023 investor letter:
“Uber Technologies provides ride hailing services to customers worldwide. The Company develops applications for road transportation, navigation, ride sharing, and payment processing solutions. Polen Capital originally purchased the 4.5% Senior Unsecured Notes due 2029 in our client accounts on the back of the Company’s new focus on profitability and free-cash-flow generation. Our view was that the Company’s credit metrics would improve over the next two-to-three years to levels on par with investment grade issuers. The Company’s fundamental profile has improved which resulted in spread tightening. Given the yield currently offered on the Notes, Polen Capital sold down its exposure and used the proceeds to purchase higher yielding debt instruments.”
A close up view of a hand holding a smartphone, using a ride sharing app.
Our calculations show that Uber Technologies, Inc. (NYSE:UBER) ranks 8th on our list of the 30 Most Popular Stocks Among Hedge Funds. Uber Technologies, Inc. (NYSE:UBER) was in 144 hedge fund portfolios at the end of the second quarter of 2023, compared to 144 funds in the previous quarter. Uber Technologies, Inc. (NYSE:UBER) delivered a 15.01% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
