Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio returned -5.00% gross and -5.26% net of fees in the third quarter compared to a -6.84% return for the Russell 2500 Growth Index. The portfolio returned 11.68% (net) YTD, compared to 5.63% for the index. The negative absolute return of the portfolio in the quarter is due to ongoing macroeconomic uncertainty related to interest rates, credit tightening, and an uneven economy from a growth perspective. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Polen U.S. SMID Company Growth Strategy highlighted stocks like Paycom Software, Inc. (NYSE:PAYC) in its Q3 2023 investor letter. Headquartered in Oklahoma City, Oklahoma, Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management solution provider. On October 30, 2023, Paycom Software, Inc. (NYSE:PAYC) stock closed at $240.06 per share. One-month return of Paycom Software, Inc. (NYSE:PAYC) was -8.21%, and its shares lost 29.95% of their value over the last 52 weeks. Paycom Software, Inc. (NYSE:PAYC) has a market capitalization of $13.911 billion.
Polen U.S. SMID Company Growth Strategy made the following comment about Paycom Software, Inc. (NYSE:PAYC) in its Q3 2023 investor letter:
“The most significant detractors from the Portfolio’s relative performance in the quarter included Farfetch, Doximity, and Paycom Software, Inc. (NYSE:PAYC).
Paycom, a leading provider of cloud-based human capital management software for small and mid-sized businesses, was another detractor in the period. Despite reporting positive results, the investors seemed concerned about the company’s performance in the year’s second half. As a result, the stock fell by almost 20% on the day of the report. However, the company is committed to investing in its BETI platform to onboard more customers, which may have a short-term negative impact on revenues. But, in the long run, it can benefit the company’s margins. Our positive long-term outlook remains unchanged. We still believe the company has an attractive growth potential in a large addressable market.”
A close-up of a person using a laptop with cloud solutions in the background.
Paycom Software, Inc. (NYSE:PAYC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Paycom Software, Inc. (NYSE:PAYC) at the end of second quarter which was 48 in the previous quarter.
We previously discussed Paycom Software, Inc. (NYSE:PAYC) in another article and also shared the list of best human resources stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.
