Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 10.51% gross of fees and 10.36% net of fees in the second quarter compared to a 12.81% return for the Russell 1000 Growth Index and an 8.74% return for the S&P 500 Index. Year-to-date, the fund returned 26.29% and 25.88 %, gross and net of fees respectively, compared to 29.02% and 16.89%, respectively, for the benchmarks. Internet and technology-oriented stocks continued their outperformance in the quarter, while last year’s outperformers like energy and utilities detracted. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Polen Focus Growth Strategy highlighted stocks like Workday, Inc. (NASDAQ:WDAY) in the second quarter 2023 investor letter. Headquartered in Pleasanton, California, Workday, Inc. (NASDAQ:WDAY) offers enterprise cloud applications. On August 7, 2023, Workday, Inc. (NASDAQ:WDAY) stock closed at $233.55 per share. One-month return of Workday, Inc. (NASDAQ:WDAY) was 5.34%, and its shares gained 40.33% of their value over the last 52 weeks. Workday, Inc. (NASDAQ:WDAY) has a market capitalization of $60.957 billion.
Polen Focus Growth Strategy made the following comment about Workday, Inc. (NASDAQ:WDAY) in its second quarter 2023 investor letter:
“Toward the end of the second quarter, we added a new position in Workday, Inc. (NASDAQ:WDAY). Workday is a large enterprise software company specializing in human capital management (HCM) software, which includes payroll, workforce planning/analytics, employee experience, recruiting, learning, and talent optimization software. It also offers financial/accounting software, which includes financial management, spend management, analytics, and financial planning software.
As an HCM cloud leader in the U.S., it is also now seeing robust growth outside the U.S. and in its financial software offerings. We expect compelling revenue growth to continue over the next five years and beyond, with free cash flow growing faster than revenue, given new co-CEO Carl Eschenbach’s focus on balancing growth and profitability more effectively. We believe valuation at approximately 30x next-twelve-months free cash flow is attractive for a highly recurring revenue business with about 20% revenue growth and faster free cash flow per share growth.”
Copyright: melpomen / 123RF Stock Photo
Workday, Inc. (NASDAQ:WDAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held Workday, Inc. (NASDAQ:WDAY) at the end of first quarter which was 83 in the previous quarter.
We discussed Workday, Inc. (NASDAQ:WDAY) in another article and shared Lee Ainslie’s Washington Commanders and other investments. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 25 Countries with the Highest Proportion of Immigrants
- 15 Countries with the Most Refugees in the U.S.
- 15 U.S. Cities with the Highest Weed Consumption in 2023
Disclosure: None. This article is originally published at Insider Monkey.
