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 Construction Partners, Inc. (NASDAQ:ROAD), in the second quarter 2024 investor letter. Construction Partners, Inc. (NASDAQ:ROAD), with a market capitalization of $3.415 billion, is a civil infrastructure company that constructs and maintains roadways. One-month return of Construction Partners, Inc. (NASDAQ:ROAD) was 18.95%, and its shares gained 96.56% of their value over the last 52 weeks. On July 31, 2024, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $64.65 per share.
Polen U.S. Small Company Growth Strategy stated the following regarding Construction Partners, Inc. (NASDAQ:ROAD) in its Q2 2024 investor letter:
“Construction Partners, Inc. (NASDAQ:ROAD) is a provider of asphalt paving services and materials in the Southeast U.S. They service both public (roughly 2/3rds of revenues) and private (1/3rd of revenues) infrastructure projects, focused on highways, roads, bridges, airports, and commercial and residential properties. We see Construction Partners as unique relative to other construction service providers as they primarily conduct maintenance work with lower project duration and dollar risk relative to hundreds of millions or billions of dollar megaprojects. This maintenance work is “recurring” in that the same customers typically come to the market each year with stable to growing project budgets, of which Construction Partners win their fair share at robust margins. We believe the combination of unique project and customer exposure, as well as management’s solid track record around vertical integration and geographic expansion make for a compelling investment case.”
Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of the first quarter which was 16 in the previous quarter. In the second fiscal quarter of 2024, Construction Partners, Inc. (NASDAQ:ROAD) generated $371.4 million in revenues, up 14.3% year-over-year. While we acknowledge the potential of Construction Partners, Inc. (NASDAQ:ROAD) 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 Construction Partners, Inc. (NASDAQ:ROAD) and shared Conestoga Capital Advisors’ 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.