Polen Capital, an investment management company, released its “Polen US SMID Company Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. SMID cap stocks initially rose by more than 10% following November’s U.S. Presidential election, in another volatile quarter. However, they relinquished nearly all of those gains in December, as the U.S. Federal Reserve signaled that interest rate cuts would occur more slowly than anticipated, with reductions expected to start in 2025. Against this backdrop, the fund returned 3.0% gross, and 2.7% net of fees compared to the Russell 2500 Growth Index return of 2.4%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen US SMID Company Growth Strategy highlighted stocks like Alarm.com Holdings, Inc. (NASDAQ:ALRM), in the fourth quarter 2024 investor letter. Alarm.com Holdings, Inc. (NASDAQ:ALRM) is a company that offers various Internet of Things (IoT) and solutions. The one-month return of Alarm.com Holdings, Inc. (NASDAQ:ALRM) was -0.05%, and its shares lost 1.46% of their value over the last 52 weeks. On January 31, 2024, Alarm.com Holdings, Inc. (NASDAQ:ALRM) stock closed at $60.67 per share with a market capitalization of $2.999 billion.
Polen US SMID Company Growth Strategy stated the following regarding Alarm.com Holdings, Inc. (NASDAQ:ALRM) in its Q4 2024 investor letter:
“Finally, we exited our position in Alarm.com Holdings, Inc. (NASDAQ:ALRM), the cloud, SaaS-based (Software as a Service) software platform for residential and commercial security companies. While we still view Alarm as a high-quality business, the EPS growth and return profile no longer compare favorably to newer ideas in our pipeline. Consistent with our best ideas and opportunity cost-driven mindset, we sold out of the position.”
A view of a control room with video screens monitoring multiple sites through intelligent automation.
Alarm.com Holdings, Inc. (NASDAQ:ALRM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Alarm.com Holdings, Inc. (NASDAQ:ALRM) at the end of the third quarter which was 31 in the previous quarter. While we acknowledge the potential of Alarm.com Holdings, Inc. (NASDAQ:ALRM) 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 Alarm.com Holdings, Inc. (NASDAQ:ALRM) and shared The Brown Capital Management Small Company 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.
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Disclosure: None. This article is originally published at Insider Monkey.