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 Goosehead Insurance, Inc (NASDAQ:GSHD) in the third quarter 2024 investor letter. Goosehead Insurance, Inc (NASDAQ:GSHD) is a holding company for Goosehead Financial, LLC that offers insurance agency services. The one-month return of Goosehead Insurance, Inc (NASDAQ:GSHD) was 23.53%, and its shares gained 62.77% of their value over the last 52 weeks. On November 15, 2024, Goosehead Insurance, Inc (NASDAQ:GSHD) stock closed at $119.08 per share with a market capitalization of $4.419 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Goosehead Insurance, Inc (NASDAQ:GSHD) in its Q3 2024 investor letter:
“The top three contributors to the Portfolio’s relative performance in the quarter were Goosehead Insurance, Inc (NASDAQ:GSHD), Revolve Group, and Hamilton Lane. Goosehead Insurance, a digitally enabled insurance brokerage business, was up nearly 60% in the third quarter following a significant drawdown in the stock in the first half of the year, as described above. Subject to broader market conditions, we expect core revenues to reaccelerate in 2024’s second half, driven by increasing headcount and improving productivity.”
An insurance broker discussing policy options with a homeowner.
Goosehead Insurance, Inc (NASDAQ:GSHD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Goosehead Insurance, Inc (NASDAQ:GSHD) at the end of the second quarter which was 23 in the previous quarter. While we acknowledge the potential of Goosehead Insurance, Inc (NASDAQ:GSHD) 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 Goosehead Insurance, Inc (NASDAQ:GSHD) and shared Next Century Growth Investors Micro-Cap Strategy’s views on the company in the previous quarter. Polen Capital shared its optimistic views on Goosehead Insurance, Inc (NASDAQ:GSHD) 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.