Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter had a strong finish for U.S. small-cap equities, driven by interest rate reductions and fading recessionary concerns. In the third quarter, the fund delivered 7.65% gross, and 7.35% net of fees compared to an 8.41% return for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.
Polen U.S. Small Company Growth Strategy highlighted stocks like AppFolio, Inc. (NASDAQ:APPF), in the third quarter 2024 investor letter. AppFolio, Inc. (NASDAQ:APPF) offers cloud business management solutions for the real estate industry. The one-month return of AppFolio, Inc. (NASDAQ:APPF) was 14.67%, and its shares gained 14.98% of their value over the last 52 weeks. On November 15, 2024, AppFolio, Inc. (NASDAQ:APPF) stock closed at $230.02 per share with a market capitalization of $8.357 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding AppFolio, Inc. (NASDAQ:APPF) in its Q3 2024 investor letter:
“We exited four positions during the quarter, including SiTime, AppFolio, Inc. (NASDAQ:APPF), RH, Doximity, and Alight. For some time, we have utilized AppFolio as a source of funds, primarily driven by our opportunity cost mindset due to its lower return potential, as shares have appreciated significantly. Continuing this trend, we fully exited the position during the quarter.”
A close-up shot of a user-friendly and customizable interface of the company’s software, designed to suit different workflows.
AppFolio, Inc. (NASDAQ:APPF) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held AppFolio, Inc. (NASDAQ:APPF) at the end of the second quarter which was 36 in the previous quarter. The second quarter revenue of AppFolio, Inc. (NASDAQ:APPF) was up 24% year-over-year to $206 million. While we acknowledge the potential of AppFolio, Inc. (NASDAQ:APPF) 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 AppFolio, Inc. (NASDAQ:APPF) and shared Brown Capital Management’s views on the company. AppFolio, Inc. (NASDAQ:APPF) contributed to the performance of Polen Capital in Q1 2024 by surpassing expectations. 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.