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 Tyler Technologies, Inc. (NYSE:TYL), in the fourth quarter 2024 investor letter. Tyler Technologies, Inc. (NYSE:TYL) offers integrated information management solutions and services for the public sector. The one-month return of Tyler Technologies, Inc. (NYSE:TYL) was 4.48%, and its shares gained 40.77% of their value over the last 52 weeks. On January 31, 2024, Tyler Technologies, Inc. (NYSE:TYL) stock closed at $601.64 per share with a market capitalization of $25.749 billion.
Polen US SMID Company Growth Strategy stated the following regarding Tyler Technologies, Inc. (NYSE:TYL) in its Q4 2024 investor letter:
“Over several quarters, we have used our investment in Tyler Technologies, Inc. (NYSE:TYL) as a source of funds and fully exited our position in the quarter. We see it as a high-quality, attractive business focused on software serving the public sector, which has been a successful investment in our view, achieving a $25B market cap. Nonetheless, we view the stock’s return potential as less compelling following its robust performance.”
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Tyler Technologies, Inc. (NYSE:TYL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Tyler Technologies, Inc. (NYSE:TYL) at the end of the third quarter which was 27 in the previous quarter. In the third quarter, Tyler Technologies, Inc. (NYSE:TYL) generated $543.3 million in revenues, up 9.8% and organically grew 9.4%. While we acknowledge the potential of Tyler Technologies, Inc. (NYSE:TYL) 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 Tyler Technologies, Inc. (NYSE:TYL) and shared the list of technology stocks that Roth MKM is cautious about. 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.