Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The market turned volatile in the third quarter. In the third quarter, the fund returned 3.21% (gross) and 2.99% (net) compared to 3.19% for the Russell 1000 Growth Index and 5.89% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Focus Growth Strategy highlighted stocks like Paycom Software, Inc. (NYSE:PAYC) in the Q3 2024 investor letter. Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management solution provider. The one-month return of Paycom Software, Inc. (NYSE:PAYC) was 38.06%, and its shares gained 29.17% of their value over the last 52 weeks. On November 11, 2024, Paycom Software, Inc. (NYSE:PAYC) stock closed at $227.70 per share with a market capitalization of $13.13 billion.
Polen Focus Growth Strategy stated the following regarding Paycom Software, Inc. (NYSE:PAYC) in its Q3 2024 investor letter:
“We added to several existing positions in the quarter including Adobe, Workday, Shopify, MSCI, and Paycom Software, Inc. (NYSE:PAYC). Finally, we modestly added to our small position in Paycom Software, given our view that the growth slowdown the company is still experiencing is due to temporary dynamics, and growth should reaccelerate with normal blocking and tackling around product development and salesforce training. While macroeconomic headwinds and lower float income (due to lower interest rates) will be a challenge, we believe Paycom remains an advantaged payroll/human capital management (“HCM”) software player with a long runway for growth ahead.”
A close-up of two software engineers typing away at laptops in a modern, well-lit office.
Paycom Software, Inc. (NYSE:PAYC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Paycom Software, Inc. (NYSE:PAYC) at the end of the second quarter which was 35 in the previous quarter. In the third quarter, Paycom Software, Inc. (NYSE:PAYC) reported $452 million in revenues, increased 11% year-over-year. While we acknowledge the potential of Paycom Software, Inc. (NYSE:PAYC) 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 Paycom Software, Inc. (NYSE:PAYC) and shared Polen Global Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.