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Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned -0.11% (gross) and -0.31% (net) compared to 8.33% for the Russell 1000 Growth Index and 4.28% for the S&P 500 Index. Generative AI (GenAI) remains the dominant market narrative in the second quarter. The portfolio does not own NVIDIA or other Semiconductor companies that are presently benefitting from the demand for AI hardware. However, with the portfolio’s extensive investment in software and IT services, the firm anticipates that GenAI's long-term economic gains will go to these industries. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Focus Growth Strategy highlighted stocks like Align Technology, Inc. (NASDAQ:ALGN) in its Q2 2024 investor letter. Align Technology, Inc. (NASDAQ:ALGN) designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services. The one-month return of Align Technology, Inc. (NASDAQ:ALGN) was 6.12%, and its shares lost 25.34% of their value over the last 52 weeks. On July 19, 2024, Align Technology, Inc. (NASDAQ:ALGN) stock closed at $251.60 per share with a market capitalization of $18.941 billion.
Polen Focus Growth Strategy stated the following regarding Align Technology, Inc. (NASDAQ:ALGN) in its Q2 2024 investor letter:
"After owning Align Technology, Inc. (NASDAQ:ALGN) for over eight years, we decided to exit our position. While recent years around the pandemic have been dynamic, the company still delivered underlying earnings per share growth of nearly 20% during this period. We held through the ups and downs during the pandemic, maintaining a longer-term view while monitoring the competitive environment and the rolling two- and three-year growth rates of key performance indicators. Those rolling growth numbers were in line with management's long-term guidance and our expectations until recent quarters, as growth has slowed. Align sells relatively high-priced discretionary products, and while the macro environment has been somewhat uncertain, it is not dire. In short, we expected better growth on easy comparisons. We will continue to monitor the company's progress, but we are stepping aside until we see stronger execution or build more conviction."
An orthodontist examining a patient's teeth with a intraoral scanner, demonstrating the precision of the company's technology.