Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund delivered 10.46% gross and 10.22% net of fees compared to a 12.75% return for the Russell 2000 Growth Index. The firm views the performance in many respects as evidence of the stability of its investment approach in the face of frequent and significant market swings. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Polen U.S. Small Company Growth Strategy featured stocks such as Core & Main, Inc. (NYSE:CNM) in the fourth quarter 2023 investor letter. Headquartered in St. Louis, Missouri, Core & Main, Inc. (NYSE:CNM) distributes water, wastewater, storm drainage, and fire protection products. On February 20, 2024, Core & Main, Inc. (NYSE:CNM) stock closed at $44.75 per share. One-month return of Core & Main, Inc. (NYSE:CNM) was 10.79%, and its shares gained 98.10% of their value over the last 52 weeks. Core & Main, Inc. (NYSE:CNM) has a market capitalization of $8.816 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Core & Main, Inc. (NYSE:CNM) in its fourth quarter 2023 investor letter:
“Core & Main, Inc. (NYSE:CNM) is an industrial distributor specializing in waterworks and fire protection markets, distributing an extensive range of over 200,000 products, including pipes, valves, fittings, water meters, storm drainage, and fire protection equipment. As one of the two largest players in a fragmented industry, the company has a solid track record of capital allocation skill that will serve them well as they continue to consolidate the industry through disciplined acquisitions. We view CNM as a high-quality business that is currently undervalued by the market given the structural tailwinds around an urgent need to repair and replace aging municipal water infrastructure. In our view, this positions the company for potential earnings surprises and multiple expansion, making it a compelling investment opportunity with an estimated IRR of approximately 20%.”
An aerial view of an industrial facility with a variety of water products being loaded into tanker trucks.
Core & Main, Inc. (NYSE:CNM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Core & Main, Inc. (NYSE:CNM) was held by 43 hedge fund portfolios, up from 37 in the previous quarter, according to our database.
We discussed Core & Main, Inc. (NYSE:CNM) in another article and shared Madison Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
