Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio returned 5.94% gross and 5.82% net of fees in the second quarter compared to a 6.42% return for the Russell 2500 Growth Index. The quarter showed an illustration of how rapidly market sentiment can shift. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Polen U.S. SMID Company Growth Strategy highlighted stocks like Morningstar, Inc. (NASDAQ:MORN) in the second quarter 2023 investor letter. Headquartered in Chicago, Illinois, Morningstar, Inc. (NASDAQ:MORN) provides investment research services. On August 11, 2023, Morningstar, Inc. (NASDAQ:MORN) stock closed at $219.99 per share. One-month return of Morningstar, Inc. (NASDAQ:MORN) was 5.22%, and its shares lost 15.39% of their value over the last 52 weeks. Morningstar, Inc. (NASDAQ:MORN) has a market capitalization of $9.361 billion.
Polen U.S. SMID Company Growth Strategy made the following comment about Morningstar, Inc. (NASDAQ:MORN) in its second quarter 2023 investor letter:
“Morningstar, Inc. (NASDAQ:MORN) is a leader in providing investment and wealth management data, software, and solutions to the financial services industry. Besides their own “Morningstar” brand, which is held in high regard by investment professionals and financial advisors for their decades-long history of providing cost-effective insight and transparency to a wide breadth of clients, they also own popular services like “Pitchbook,” “Sustainalytics” and “DBRS.” Management has spent the last four years investing heavily in several business lines (like private markets data and ESG) that have depressed margins in the near term but should provide durable growth opportunities for many years. As the company reaps the benefits from these investments over the coming years, we expect margins to track towards their prior levels of 20-25% (from current low-to-mid teens). Combined with low-double-digit revenue growth and management’s long history of opportunistic share buybacks, this should translate into ~20% EPS growth over our holding period.”
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Morningstar, Inc. (NASDAQ:MORN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Morningstar, Inc. (NASDAQ:MORN) at the end of first quarter which was 23 in the previous quarter.
We discussed Morningstar, Inc. (NASDAQ:MORN) in another article and shared Baron Asset Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 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.
