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 Goosehead Insurance, Inc (NASDAQ:GSHD) in the fourth quarter 2024 investor letter. Goosehead Insurance, Inc (NASDAQ:GSHD) is a holding company for Goosehead Financial, LLC that offers insurance agency services. The one-month return of Goosehead Insurance, Inc (NASDAQ:GSHD) was 3.61%, and its shares gained 37.17% of their value over the last 52 weeks. On January 31, 2024, Goosehead Insurance, Inc (NASDAQ:GSHD) stock closed at $107.17 per share with a market capitalization of $3.977 billion.
Polen US SMID Company Growth Strategy stated the following regarding Goosehead Insurance, Inc (NASDAQ:GSHD) in its Q4 2024 investor letter:
“Goosehead Insurance, Inc (NASDAQ:GSHD), a digitally enabled insurance brokerage business, was a top contributor on the back of positive earnings results including a rising 2024 revenue guidance. The company continues to execute well amidst a challenging macro backdrop, driving robust expense management, higher productivity, and compelling agent headcount growth.”
An insurance broker discussing policy options with a homeowner.
Goosehead Insurance, Inc (NASDAQ:GSHD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Goosehead Insurance, Inc (NASDAQ:GSHD) at the end of the third quarter which was 18 in the previous quarter. While we acknowledge the potential of Goosehead Insurance, Inc (NASDAQ:GSHD) 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 Goosehead Insurance, Inc (NASDAQ:GSHD) and shared Polen U.S. Small Company Growth Strategy’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.