Polen Capital, an investment management company, released its “Polen Global Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the second quarter, AI remained the dominant narrative in markets. The Strategy returned -1.63% gross (-1.91% net) compared to the MSCI ACW Index’s 2.87% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Global Growth Strategy highlighted stocks like Paycom Software, Inc. (NYSE:PAYC) in the Q2 2024 investor letter. Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management solution provider. The one-month return of Paycom Software, Inc. (NYSE:PAYC) was 14.67%, and its shares lost 55.48% of their value over the last 52 weeks. On July 26, 2024, Paycom Software, Inc. (NYSE:PAYC) stock closed at $164.03 per share with a market capitalization of $9.532 billion.
Polen Global Growth Strategy stated the following regarding Paycom Software, Inc. (NYSE:PAYC) in its Q2 2024 investor letter:
“Finally, Paycom Software, Inc. (NYSE:PAYC)—a new addition we started at a smaller position size—represented another relative detractor in the period. Paycom is a leading cloud-native payroll and human capital management (HCM) software provider. A recent go-to-market hiccup with their new BETI product and some macro weaknesses have led to a deceleration in their near-term growth. However, we continue to think the long-term picture remains intact as a leader in an attractive industry, providing mission-critical software with highly recurring revenue, 90%+ retention rates, and high returns on capital. The stock price performance has effectively been all P/E multiple compression.”
A close-up of two software engineers typing away at laptops in a modern, well-lit office.
Paycom Software, Inc. (NYSE:PAYC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Paycom Software, Inc. (NYSE:PAYC) at the end of the first quarter which was 40 in the previous quarter. The first quarter revenue of Paycom Software, Inc. (NYSE:PAYC) was $500 million, up 11% compared to Q1 2023. While we acknowledge the potential of Paycom Software, Inc. (NYSE:PAYC) 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 Paycom Software, Inc. (NYSE:PAYC) and shared Oakmark Select Fund’s views on the company. In Q1 2024, Polen Focus Growth Strategy established a new position in Paycom Software, Inc. (NYSE:PAYC). 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.
