Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth Strategy” second-quarter 2024 investor letter. A copy of the same can be downloaded here. The portfolio returned -8.42% gross and -8.71% net of fees in the second quarter compared to a -4.22% return for the Russell 2500 Growth Index. In the second quarter, there was a shift from lower-quality, high-priced stocks to a more cautious approach due to concerns about high inflation. This led to a widening performance gap between small and mid-sized and large company stocks, as investors turned to lower-volatility sectors. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen U.S. SMID Company Growth Strategy highlighted stocks like Tetra Tech, Inc. (NASDAQ:TTEK), in the second quarter 2024 investor letter. Tetra Tech, Inc. (NASDAQ:TTEK) is a consulting and engineering services provider that operates through two segments, Government Services Group (GSG) and Commercial/International Services Group (CIG). The one-month return of Tetra Tech, Inc. (NASDAQ:TTEK) was 6.11%, and its shares gained 25.35% of their value over the last 52 weeks. On July 29, 2024, Tetra Tech, Inc. (NASDAQ:TTEK) stock closed at $212.35 per share with a market capitalization of $11.36 billion.
Polen U.S. SMID Company Growth Strategy stated the following regarding Tetra Tech, Inc. (NASDAQ:TTEK) in its Q2 2024 investor letter:
“Tetra Tech, Inc. (NASDAQ:TTEK) is an environmental consulting business that we have followed for several years and is the number one player in water and water infrastructure-related consulting. They are also a significant player in environment, renewable energy, sustainable infrastructure, and international development. The company has a long history of consistent growth and robust returns on capital. About 30% of the revenue derives from long-term projects from the federal government, another 11% from state and local government, and a portion from disaster response and international aid. In our view, this provides some ballast to Tetra Tech’s demand, also driven by commercial projects. Overall, between significant infrastructure spending, the potential for widespread PFASS cleanup, water scarcity, and changing environmental conditions, we believe the demand backdrop for Tetra Tech is improving, creating an attractive investment opportunity.”
An energy executive observing a wind turbine farm from a remote location.
Tetra Tech, Inc. (NASDAQ:TTEK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Tetra Tech, Inc. (NASDAQ:TTEK) at the end of the first quarter which was 27 in the previous quarter. While we acknowledge the potential of Tetra Tech, Inc. (NASDAQ:TTEK) 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 Tetra Tech, Inc. (NASDAQ:TTEK) and shared the list of best dividend stocks of 2024. 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.
