Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund delivered -8.55% gross and -8.67% net of fees compared to a -2.92% return for the Russell 2000 Growth Index and a -1.41% return for the S&P SmallCap 600 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen U.S. Small Company Growth Strategy highlighted stocks like Revolve Group, Inc. (NYSE:RVLV), in the second 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 23.01%, and its shares gained 10.82% of their value over the last 52 weeks. On July 31, 2024, Revolve Group, Inc. (NYSE:RVLV) stock closed at $19.35 per share with a market capitalization of $1.37 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Revolve Group, Inc. (NYSE:RVLV) in its Q2 2024 investor letter:
“Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer targeting Gen Z women. The stock was one of our top performers early in the year but has retrenched over the past quarter largely due to increasing “risk-off” flight-to-safety market dynamics. Notably, the business fundamentals have inflected positively this year, leading us to believe that shifting market sentiment has an outsized impact on the stock price. Revolve Group is more economically sensitive over the near term as a consumer discretionary company, but earnings have bottomed after two tough years, and we continue to view Revolve as well-positioned to grow earnings at an accelerating rate over the near term, while the long-term outlook is intact.”
A modern fashion boutique lit up with neon display signs.
Revolve Group, Inc. (NYSE:RVLV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Revolve Group, Inc. (NYSE:RVLV) at the end of the first quarter which was 18 in the previous quarter. In the first quarter, the net sales of Revolve Group, Inc. (NYSE:RVLV) were $271 million, a decrease of 3% year-over-year. 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 Polen U.S. SMID Company Growth Strategy’s views on the company in the previous quarter. 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.
