Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth Strategy” second-quarter 2024 investor letter. A copy of the same can be downloaded here. The portfolio returned -8.42% gross and -8.71% net of fees in the second quarter compared to a -4.22% return for the Russell 2500 Growth Index. In the second quarter, there was a shift from lower-quality, high-priced stocks to a more cautious approach due to concerns about high inflation. This led to a widening performance gap between small and mid-sized and large company stocks, as investors turned to lower-volatility sectors. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen U.S. SMID Company Growth Strategy highlighted stocks like CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS), in the second quarter 2024 investor letter. CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) is a software-as-a-service company for the P&C insurance economy. The one-month return of CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) was -0.09%, and its shares gained 0.55% of their value over the last 52 weeks. On July 29, 2024, CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) stock closed at $11.05 per share with a market capitalization of $6.87 billion.
Polen U.S. SMID Company Growth Strategy stated the following regarding CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) in its Q2 2024 investor letter:
“CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) is a cloud-enabled platform used by insurance carriers, repair shops, and parts suppliers in the auto insurance, claims, and repairs industries. The business model combines attributes from software companies and online marketplaces by serving as the connective tissue that processes 85% of all U.S. automotive claims volume. It operates as a near monopoly and reduces friction for what would otherwise be a very manual process involving significant coordination among industry participants. Theirs is a growing, high recurring revenue business with high operating margins. Long-term growth has been driven by 99% gross dollar retention and 110%+ net dollar retention from continued product innovations. We believe the fundamentals are uniquely stable and largely driven by auto claims volumes that do not necessarily reflect typical economic cycles.”
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CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) at the end of the first quarter which was 20 in the previous quarter. CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) reported $227 million in revenues in the first quarter, up 11% compared to Q1 2023. While we acknowledge the potential of CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) 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 CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) and shared Brasada Capital Management’s views on the company. Artisan Mid Cap Fund initiated a position in CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) during Q2 2024. In addition, please check out our hedge fund investor letters Q2 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.
