Here’s Why Polen Capital Remains Very Impressed with Karooooo Ltd. (KARO)

Polen Capital, an investment management firm, published its “Polen Global Emerging Markets Growth Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. During the second quarter of 2022, the Polen Global Emerging Markets Growth Composite Portfolio (the “Portfolio”) returned -8.94% gross and -9.27% net of fees, respectively, versus the -11.44% return for the MSCI Emerging Markets Index (the “Index”).  Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Polen Global Emerging Markets Growth Fund mentioned Karooooo Ltd. (NASDAQ:KARO) and explained its insights for the company. Founded in 2001, Karooooo Ltd. (NASDAQ:KARO) is a Singapore-based on-the-ground operations cloud provider with a $753.4 million market capitalization. Karooooo Ltd. (NASDAQ:KARO) delivered a -43.28% return since the beginning of the year, while its 12-month returns are down by -28.60%. The stock closed at $23.13 per share on October 05, 2022.

Here is what Polen Global Emerging Markets Growth Fund has to say about Karooooo Ltd. (NASDAQ:KARO) in its Q2 2022 investor letter:

Karooooo is a leading South African and Southeast Asian provider of highly precise vehicle tracking services that help its customers improve their logistics operations’ efficiency, safety, and security.
Despite the price weakness during the quarter and year-to-date, the company continues to deliver solid operating results, with subscribers and revenues for the full year ending February 2021 increasing by 17% and 20%, respectively. During the quarter, we spoke with Zak Calisto, CEO of Karoooo, about the business and its plans for the future. Following our discussion, we remain very impressed with the company’s strategy, quality of management, and ability to continue compounding cash flows for many years.”

Our calculations show that Karooooo Ltd. (NASDAQ:KARO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Karooooo Ltd. (NASDAQ:KARO) was in 3 hedge fund portfolios at the end of the second quarter of 2022, compared to 4 funds in the previous quarter. Karooooo Ltd. (NASDAQ:KARO) delivered a 6.69% return in the past 3 months.

In October 2021, we published an article that includes Karooooo Ltd. (NASDAQ:KARO) in 11 Best High Dividend Stocks Under $50. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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