Polen Capital, an investment management company, released its “Polen Global SMID Company Growth” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned -8.90 (gross) and -8.96% (net) compared to -2.05% return for the MSCI ACWI SMID Capitalization Index. Uncertainty around the national elections and shifting economic expectations seemingly weighed on the equity market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Global SMID Company Growth Strategy highlighted stocks like Tencent Music Entertainment Group (NYSE:TME), in the second quarter 2024 investor letter. Tencent Music Entertainment Group (NYSE:TME) operates online music entertainment platforms. Tencent Music Entertainment Group’s (NYSE:TME) one-month return was -11.95%, and its shares gained 110.48% of their value over the last 52 weeks. On August 7, 2024, Tencent Music Entertainment Group (NYSE:TME) stock closed at $13.26 per share with a market capitalization of $22.999 billion.
Polen Global SMID Company Growth Strategy stated the following regarding Tencent Music Entertainment Group (NYSE:TME) in its Q2 2024 investor letter:
“Tencent Music Entertainment Group (NYSE:TME), China’s equivalent to Spotify, posted another robust quarter with continued improvement in profitability. Its music business has continued to perform well in a robust pricing environment, leading to robust revenue and earnings growth. The company now has over 113 million paying music subscribers, a more than 20% year-over-year increase and revenue mix shift. Higher average revenue per paying user has led to the company’s highest gross margin in five years.”
A singing performer silhouetted on a spotlighted online stage.
Tencent Music Entertainment Group (NYSE:TME) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Tencent Music Entertainment Group (NYSE:TME) at the end of the first quarter which was 23 in the previous quarter. Tencent Music Entertainment Group’s (NYSE:TME) gross margin for the quarter was 40.9%, up 2.6% from the previous quarter and 7.8% from the previous year quarter. While we acknowledge the potential of Tencent Music Entertainment Group (NYSE:TME) 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 Tencent Music Entertainment Group (NYSE:TME) and shared Polen Emerging Markets 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.
