Is Globant (GLOB) A Smart Long-Term Buy?

Polen Capital, an investment management firm, published its “Polen International Growth” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of 6.59% was delivered by the fund for the third quarter of 2021, outperforming the MSCI All Country World ex-USA Index (the “Index”) by 4.65% in the quarter. For the year, the Portfolio returned 7.10% versus the Index return of 7.82%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Polen International Growth, in its Q4 2021 investor letter, mentioned Globant S.A. (NYSE: GLOB) and discussed its stance on the firm. Globant S.A. is a Buenos Aires, Argentina-based software development company with an $11.1 billion market capitalization. GLOB delivered a -14.34% return since the beginning of the year, while its 12-month returns are up by 22.90%. The stock closed at $269.04 per share on February 16, 2022.

Here is what Polen International Growth has to say about Globant S.A. in its Q4 2021 investor letter:

“We initiated a position in Globant. Globant is a digitally native IT services company helping clients reinvent themselves to create a way forward and unleash their potential. The company has particular expertise in artificial intelligence, blockchain, and AR/VR technologies. Roughly 70% of revenues are generated in North America, with another 20% from Latin America. The company has over 800 clients, of which more than 150 spend more than $1 million annually on services Globant provides, including major companies like Disney and Google. We believe that positive client outcomes from complex projects drive client affinity and switching costs. While switching costs can be hard to prove, the recurring revenue nature of IT services businesses is a familiar theme to the Polen Large Company Growth Team. Our research indicates that Globant can grow earnings at greater than 25% for the next five years.”

Our calculations show that Globant S.A. (NYSE: GLOB failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. GLOB was in 21 hedge fund portfolios at the end of the third quarter of 2021, compared to -15.22 funds in the previous quarter. Globant S.A. (NYSE: GLOB delivered a -14.56% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on GLOB in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.