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 Hamilton Lane Incorporated (NASDAQ:HLNE), in the fourth quarter 2024 investor letter. Hamilton Lane Incorporated (NASDAQ:HLNE) is a private equity and venture capital firm. The one-month return of Hamilton Lane Incorporated (NASDAQ:HLNE) was 6.12%, and its shares gained 33.15% of their value over the last 52 weeks. On January 30, 2024, Hamilton Lane Incorporated (NASDAQ:HLNE) stock closed at $159.46 per share with a market capitalization of $8.884 billion.
Polen US SMID Company Growth Strategy stated the following regarding Hamilton Lane Incorporated (NASDAQ:HLNE) in its Q4 2024 investor letter:
“Hamilton Lane Incorporated (NASDAQ:HLNE) is a private markets advisory and funds business serving primarily institutional investors. A robust performer for the better part of 2024, the stock came under pressure in the back half of the quarter, which coincided with rising rates in anticipation of the Fed pulling back on its 2025 rate cut expectations. We maintain our belief that the company is well-positioned given the growth in private markets across asset classes, as well as Hamilton Lane’s highly durable and recurring fee revenue and fee earnings.”
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Hamilton Lane Incorporated (NASDAQ:HLNE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Hamilton Lane Incorporated (NASDAQ:HLNE) at the end of the third quarter which was 18 in the previous quarter. While we acknowledge the potential of Hamilton Lane Incorporated (NASDAQ:HLNE) 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 Hamilton Lane Incorporated (NASDAQ:HLNE) and shared Artisan Small Cap Fund’s views on the company in the previous quarter. Hamilton Lane Incorporated (NASDAQ:HLNE) was one of the top three contributors to Polen U.S. Small Company Growth Strategy’s relative 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.