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 Monolithic Power Systems, Inc. (NASDAQ:MPWR), in the first quarter 2024 investor letter. Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a semiconductor-based power electronics solutions provider. The one-month return of Monolithic Power Systems, Inc. (NASDAQ:MPWR) was -0.18%, and its shares appreciated 50.33% of their value over the last 52 weeks. On July 29, 2024, Monolithic Power Systems, Inc. (NASDAQ:MPWR) stock closed at $827.26 per share with a market capitalization of $40.264 billion.
Polen U.S. SMID Company Growth Strategy stated the following regarding Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its Q2 2024 investor letter:
“Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a semiconductor company with an analog and mixed-signal integrated circuit that is a prominent innovator in the power management market. The company has seen compelling fundamentals largely due to growth in its enterprise data segment, driven by cloud-based Central Processing Unit (“CPU”) server applications, including Al. Monolithic is an example of the dynamic described in our opening remarks in which momentum continued to drive certain Al stocks higher. We trimmed our position due to valuation and market capitalization.”
An engineer examining a DC to DC integrated circuit board, looking for any flaws.
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Monolithic Power Systems, Inc. (NASDAQ:MPWR) at the end of the first quarter which was 35 in the previous quarter. Monolithic Power Systems, Inc. (NASDAQ:MPWR) experienced revenue growth in the Q1 2024 outpacing both Q4 2023 and Q1 2023. While we acknowledge the potential of Monolithic Power Systems, Inc. (NASDAQ:MPWR) 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 Monolithic Power Systems, Inc. (NASDAQ:MPWR) and shared Artisan Small 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.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.