Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. According to the Russell 2000 Growth Index, U.S. small cap growth stocks experienced a 1.7% increase in the fourth quarter and a 15% rise for the year 2024. In what proved to be a tumultuous quarter, small caps surged over 10% following the U.S. Presidential election in November, but nearly all of those gains were lost in December as the U.S. Federal Reserve indicated a more gradual reduction in interest rates expected in 2025. In the fourth quarter, the fund delivered 5.09% gross, and 4.73% net of fees compared to a 1.70% 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.
In its fourth quarter 2024 investor letter, Polen U.S. Small Company Growth Strategy emphasized stocks such as Belden Inc. (NYSE:BDC). Headquartered in St. Louis, Missouri, Belden Inc. (NYSE:BDC) offers a portfolio of signal transmission solutions for mission critical applications. The one-month return Belden Inc. (NYSE:BDC) was 0.29%, and its shares gained 38.06% of their value over the last 52 weeks. On February 5, 2024, Belden Inc. (NYSE:BDC) stock closed at $116.29 per share, with a market capitalization of $4.691 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Belden Inc. (NYSE:BDC) in its Q4 2024 investor letter:
“During the quarter, we initiated positions in four new investments: Willscot Holdings, Trex, Fabrinet, and Belden Inc. (NYSE:BDC). We also added to several existing positions.
Finally, we started a new position in Belden as it is transforming into a solutions-driven leader in networking, connectivity, and security, focused on high-growth sectors like industrial automation, broadband services, and data centers. Its Solutions Transformation Strategy enables margin expansion, deeper customer relationships, and recurring revenue models, with a mid-single-digit annual revenue growth target and 10%-12% EPS growth through 2028. Belden’s strong balance sheet and disciplined management create additional upside opportunities.”
A satellite dish installation atop a modern building, symbolizing the power of signal transmission solutions.
Belden Inc. (NYSE:BDC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Belden Inc. (NYSE:BDC) at the end of the third quarter which was 16 in the previous quarter. Belden Inc.’s (NYSE:BDC) third quarter revenue of $655 million, was up 8% sequentially and exceeding the high end of its guidance of $650 million. While we acknowledge the potential of Belden Inc. (NYSE:BDC) 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 Belden Inc. (NYSE:BDC) and shared Goldman Sachs’ best phase 2 AI stock picks. 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.