Polen Capital: “We Believe in FND’s Future Growth Prospects and its Compounding Potential”

Polen Capital, an investment management firm, published its “Polen US SMID Company Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Over the first quarter, the Polen U.S. SMID Company Growth Composite Portfolio (the “Portfolio”) returned -23.81% gross and -24.02% net of fees, respectively, underperforming the Russell 2500 Growth Index’s -12.30% return.  Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022. 

In its Q1 2022 investor letter, Polen US SMID Company Growth Fund mentioned Floor & Decor Holdings, Inc. (NYSE:FND) and explained its insights for the company. Founded in 2000, Floor & Decor Holdings, Inc. (NYSE:FND) is an Atlanta, Georgia-based specialty retail company with an $8.1 billion market capitalization. Floor & Decor Holdings, Inc. (NYSE:FND) delivered a -40.83% return since the beginning of the year, while its 12-month returns are down by -20.81%. The stock closed at $76.99 per share on June 02, 2022.

Here is what Polen US SMID Company Growth Fund has to say about Floor & Decor Holdings, Inc. (NYSE:FND) in its Q1 2022 investor letter:

“We added Floor & Decor during the quarter. We had previously owned this company in our U.S. small-cap strategy and sold in response to its growing market cap. The recent dislocation between the company’s share price and its solid underlying fundamentals compelled us to add this holding to the Portfolio. We see a long runway for the company’s growth, which posted record sales and expanded by more than 40% in 2021. Floor & Decor’s strategy is to add new stores, improve comparable sales, and grow its e-commerce business. The company continues to reinvest in the business, particularly in areas where customer economics are desirable, including professional sales and design services. We believe in the company’s future growth prospects and its compounding potential.”

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Our calculations show that Floor & Decor Holdings, Inc. (NYSE:FND) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Floor & Decor Holdings, Inc. (NYSE:FND) was in 30 hedge fund portfolios at the end of the first quarter of 2022, compared to 36 funds in the previous quarter. Floor & Decor Holdings, Inc. (NYSE:FND) delivered a -17.12% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on Floor & Decor Holdings, Inc. (NYSE:FND) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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