Polen Capital, an investment management company, released its “Polen Global SMID Company Growth” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned -8.90 (gross) and -8.96% (net) compared to -2.05% return for the MSCI ACWI SMID Capitalization Index. Uncertainty around the national elections and shifting economic expectations seemingly weighed on the equity market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Global SMID Company Growth Strategy highlighted stocks like DLocal Limited (NASDAQ:DLO), in the second quarter 2024 investor letter. DLocal Limited (NASDAQ:DLO) is a payment processing platform. The one-month return of DLocal Limited (NASDAQ:DLO) was -8.23%, and its shares lost 42.32% of their value over the last 52 weeks. On August 7, 2024, DLocal Limited (NASDAQ:DLO) stock closed at $7.36 per share with a market capitalization of $2.127 billion.
Polen Global SMID Company Growth Strategy stated the following regarding DLocal Limited (NASDAQ:DLO) in its Q2 2024 investor letter:
“DLocal Limited (NASDAQ:DLO), a payments processing company headquartered in Uruguay saw further weakness after reporting disappointing first quarter results. While payment volumes and revenues grew 49% and 34%, respectively, in 1Q 2024, gross profit only grew 2% due to elevated processing costs. The company has also invested more in building out its scale and functionality, which further weighed on profitability. Longer term, as one of the leading emerging markets payments processing companies, we believe dLocal can continue to see attractive growth and improve profitability under a highly-regarded management team.”
A modern payment processor with illuminated buttons in a busy financial district.
DLocal Limited (NASDAQ:DLO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held DLocal Limited (NASDAQ:DLO) at the end of the first quarter which was 25 in the previous quarter. In the first quarter DLocal Limited (NASDAQ:DLO) reported $184 million in revenue, up 34% year-over-year and a gross profit of $63 million, up 2% year over year. While we acknowledge the potential of DLocal Limited (NASDAQ:DLO) 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 DLocal Limited (NASDAQ:DLO) and shared Polen Emerging Markets Growth Strategy’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.