Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 10.51% gross of fees and 10.36% net of fees in the second quarter compared to a 12.81% return for the Russell 1000 Growth Index and an 8.74% return for the S&P 500 Index. Year-to-date, the fund returned 26.29% and 25.88 %, gross and net of fees respectively, compared to 29.02% and 16.89%, respectively, for the benchmarks. Internet and technology-oriented stocks continued their outperformance in the quarter, while last year’s outperformers like energy and utilities detracted. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Polen Focus Growth Strategy highlighted stocks like Netflix, Inc. (NASDAQ:NFLX) in the second quarter 2023 investor letter. Headquartered in Los Gatos, California, Netflix, Inc. (NASDAQ:NFLX) is a streaming platform. On August 7, 2023, Netflix, Inc. (NASDAQ:NFLX) stock closed at $440.76 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was 0.12%, and its shares gained 91.68% of their value over the last 52 weeks. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $195.936 billion.
Polen Focus Growth Strategy made the following comment about Netflix, Inc. (NASDAQ:NFLX) in its second quarter 2023 investor letter:
“In 2022, some of our holdings had difficulty achieving revenue growth in line with their long-term trends because of difficult comparisons and changing COVID dynamics. Now, most of these companies have experienced a rebound in revenue growth and have also shown a newfound willingness to control their operating expenditures, yielding substantial margin expansion and earnings growth. For example, Amazon and Netflix, Inc. (NASDAQ:NFLX) (two of our top three absolute contributors to our return in 2Q) are exercising more stringent spending discipline while revenue growth accelerates, a powerful combination for earnings growth in our view.
The top absolute contributors to the Portfolio’s performance in the second quarter were Amazon, Netflix, and Microsoft. As mentioned, Amazon and Netflix are seeing their revenue growth accelerate after a difficult 2022 while keeping expense growth in check. We expect robust earnings growth for both companies in 2023 and growth rates in the mid-teens or higher well into the future.”
Photo by Souvik Banerjee on Unsplash
Netflix, Inc. (NASDAQ:NFLX) is in 12th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 108 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of first quarter which was 117 in the previous quarter.
We discussed Netflix, Inc. (NASDAQ:NFLX) in another article and shared Jim Cramer’s S&P 500 stock picks for 2023. 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.
