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 Tyler Technologies, Inc. (NYSE:TYL), in the second quarter 2024 investor letter. Tyler Technologies, Inc. (NYSE:TYL) offers integrated information management solutions and services for the public sector. The one-month return of Tyler Technologies, Inc. (NYSE:TYL) was 13.36%, and its shares gained 44.87% of their value over the last 52 weeks. On July 29, 2024, Tyler Technologies, Inc. (NYSE:TYL) stock closed at $576.99 per share with a market capitalization of $24.496 billion.
Polen U.S. SMID Company Growth Strategy stated the following regarding Tyler Technologies, Inc. (NYSE:TYL) in its Q2 2024 investor letter:
“Tyler Technologies, Inc. (NYSE:TYL) is a public-sector software company that provides software solutions that meet the unique needs of state, local, and federal government institutions and agencies. Tyler’s shares underperformed in the first quarter, and given the volatile environment, this reversed sharply in the second quarter. There has been no change to fundamentals, which have been consistently robust for many quarters.”
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Tyler Technologies, Inc. (NYSE:TYL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Tyler Technologies, Inc. (NYSE:TYL) at the end of the first quarter which was 2o in the previous quarter. As per our database, 25 hedge fund portfolios held Tyler Technologies, Inc. (NYSE:TYL) at the end of the first quarter which was 29 in the previous quarter. In the second quarter Tyler Technologies, Inc. (NYSE:TYL) generated $541 million in revenues, up 7.3% and organically grew 6.5%. While we acknowledge the potential of Tyler Technologies, Inc. (NYSE:TYL) 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 Tyler Technologies, Inc. (NYSE:TYL) and shared Artisan Mid Cap Fund’s views on the company. 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.