Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The market turned volatile in the third quarter. In the third quarter, the fund returned 3.21% (gross) and 2.99% (net) compared to 3.19% for the Russell 1000 Growth Index and 5.89% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Focus Growth Strategy highlighted stocks like ServiceNow, Inc. (NYSE:NOW), in the third quarter 2024 investor letter. ServiceNow, Inc. (NYSE:NOW) offers intelligent workflow automation solutions for digital businesses. The one-month return of ServiceNow, Inc. (NYSE:NOW) was 11.64%, and its shares gained 58.37% of their value over the last 52 weeks. On November 11, 2024, ServiceNow, Inc. (NYSE:NOW) stock closed at $1,036.01 per share with a market capitalization of $213.746 billion.
Polen Focus Growth Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q3 2024 investor letter:
“In the third quarter, the top relative contributors to the Portfolio’s performance were NVIDIA (not owned), Shopify, and ServiceNow, Inc. (NYSE:NOW). ServiceNow reported better-than-expected sales and bookings during the quarter, with subscription sales up +23%. Encouragingly, GenAI offerings within its product suite, rolled out in late 2023, already appear to be an incremental driver of this growth. In our view, ServiceNow is a great example of a consistent grower, with a strong moat serving diverse and growing end markets with expanding margin opportunities over time.”
A team of software engineers at desks working on code for a cutting-edge cloud computing solution.
ServiceNow, Inc. (NYSE:NOW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 97 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the second quarter which was 90 in the previous quarter. In Q3 2024, ServiceNow, Inc.’s (NYSE:NOW) subscription revenue increased 22.5% year-over-year to $2.715 billion. While we acknowledge the potential of ServiceNow, Inc. (NYSE:NOW) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed ServiceNow, Inc. (NYSE:NOW) and shared Aristotle Large Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 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.