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 Revolve Group, Inc. (NYSE:RVLV), in the fourth quarter 2024 investor letter. Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer for millennial and Generation Z consumers. The one-month return of Revolve Group, Inc. (NYSE:RVLV) was -6.99%, and its shares gained 109.27% of their value over the last 52 weeks. On January 30, 2024, Revolve Group, Inc. (NYSE:RVLV) stock closed at $31.39 per share with a market capitalization of $2.221 billion.
Polen US SMID Company Growth Strategy stated the following regarding Revolve Group, Inc. (NYSE:RVLV) in its Q4 2024 investor letter:
“Revolve Group, Inc. (NYSE:RVLV), an online apparel retailer targeting primarily Millennial and Gen Z demographics, was the top performer after demonstrating improving fundamentals following a challenging period, with the stock’s total return up over 100% for the year. While the consumer environment remains under pressure, we are encouraged by the company’s efforts to drive cost efficiencies, reduce return rates, expand product lines, and continue its international push. We believe Revolve is well-positioned to grow earnings at an accelerating rate over the near term while the long-term outlook remains intact.
A modern fashion boutique lit up with neon display signs.
Revolve Group, Inc. (NYSE:RVLV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Revolve Group, Inc. (NYSE:RVLV) at the end of the third quarter which was 17 in the previous quarter. Revolve Group, Inc.’s (NYSE:RVLV) net sales increased 10% in the third quarter to $283 million. While we acknowledge the potential of Revolve Group, Inc. (NYSE:RVLV) 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 Revolve Group, Inc. (NYSE:RVLV) and shared the list of stocks that analysts are talking about. Revolve Group, Inc. (NYSE:RVLV) contributed to Polen Capital’s performance 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.