Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter had a strong finish for U.S. small-cap equities, driven by interest rate reductions and fading recessionary concerns. In the third quarter, the fund delivered 7.65% gross, and 7.35% net of fees compared to an 8.41% return for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen U.S. Small Company Growth Strategy highlighted stocks like Doximity, Inc. (NYSE:DOCS) in its Q3 2024 investor letter. Headquartered in San Francisco, California, Doximity, Inc. (NYSE:DOCS) provides a cloud platform for medical professionals. The one-month return of Doximity, Inc. (NYSE:DOCS) was 17.76%, and its shares gained 102.29% of their value over the last 52 weeks. On November 15, 2024, Doximity, Inc. (NYSE:DOCS) stock closed at $49.40 per share with a market capitalization of $9.223 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Doximity, Inc. (NYSE:DOCS) in its Q3 2024 investor letter:
“We exited four positions during the quarter, including SiTime, AppFolio, RH, Doximity, Inc. (NYSE:DOCS), and Alight. We also exited our position in Doximity, the media platform best described as “LinkedIn for doctors.” While Doximity is a unique platform, we’ve been concerned about how the company is positioned given the switch to greater programmatic advertising buying. Due to the combination of this business model transition and the business’ above-average valuation, we moved on in favor of better risk-adjusted opportunities.”
A pathologist and a laboratory assistant in a laboratory researching medical news and data.
Doximity, Inc. (NYSE:DOCS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Doximity, Inc. (NYSE:DOCS) at the end of the second quarter which was 23 in the previous quarter. In the second quarter of fiscal 2025, Doximity, Inc. (NYSE:DOCS) delivered $137 million of revenue, which represents 20% year-on-year increase and a 7% above the high end of guidance range. While we acknowledge the potential of Doximity, Inc. (NYSE:DOCS) 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 Doximity, Inc. (NYSE:DOCS) and shared Diamond Hill Long-Short Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.