Polen Capital's Trades in Q2 2024

We break down the stocks Polen Capital bought, sold, and held in Q2 2024, including their holdings at the end of the quarter. All data sourced from Polen Capital's 13F filed on August 12, 2024.

Who is Polen Capital?

Polen Capital is a global investment management firm founded in 1979, specializing in high-conviction growth strategies across large-cap, small-cap, and emerging markets portfolios. Known for its disciplined approach and low turnover, Polen has established a strong track record of outperformance over multiple market cycles. The firm's investment philosophy centers on identifying businesses with sustainable competitive advantages, superior financial strength, and proven management teams that can deliver consistent, above-average earnings growth.

Polencapital.com
Wikipedia on Polen Capital

Portfolio Changes in Q2 2024

New positions

Polen Capital initiated twelve new positions during Q2 2024, with the largest being PDD Holdings (PDD) at $7.3 million, followed by Option Care Health (OPCH) at $4.3 million and AAON (AAON) at $3.0 million. Other notable new holdings include Installed Building Products (IBP), Repligen (RGEN), and a small position in Meta (META).

Bought

Polen Capital made significant additions to existing positions, most notably massively increasing their stake in Shopify (SHOP) from $64 million to $972 million and MSCI (MSCI) from $76 million to $795 million. The firm also added to positions in Paycom (PAYC) and CCC Intelligent Solutions (CCCS), while maintaining or slightly increasing stakes in Alphabet (GOOG) and Novo Nordisk (NVO).

Sold

Polen Capital completely liquidated six positions including Wingstop (WING), XPEL (XPEL), Helen of Troy (HELE), and Bumble (BMBL), while also exiting a bond position in Forum Energy Technologies. The firm significantly reduced major holdings, nearly eliminating positions in Autodesk (ADSK) and Align (ALGN) (both down 99%), and trimming stakes in core holdings including Amazon (AMZN), Netflix (NFLX), Abbott (ABT), Airbnb (ABNB), Nike (NKE), Visa (V), Accenture (ACN), and Workday (WDAY).

New Investments in Q2 2024

PDD Holdings PDD

Polen Capital bought $7.3M of PDD Holdings in Q2 2024. PDD Holdings reported a 10% year-over-year revenue increase to RMB95.7B in Q1 2025, driven by online marketing services growth. However, operating profit fell 38% and net income dropped 47% due to aggressive investments in platform ecosystem development. Despite a 14% intraday stock decline post-earnings, shares remain up 8% YTD, with Citigroup recently upgrading to Buy citing 35% upside potential.

• Q1 revenue growth of 10% (RMB95.7B) despite 43% surge in marketing spend.
• 47% net income decline YoY to RMB14.7B as strategic investments compress margins.
• 35.2% average price target upside ($157.33) with institutional holdings increasing 12.5% last quarter.

Option Care Health OPCH

Polen Capital bought $4.25M of Option Care Health in Q2 2024. Option Care Health delivered strong Q1 2025 results with $1.33 billion in revenue (16.3% YoY growth), continuing its upward trajectory from 2024's performance. The company improved operational efficiency with adjusted EBITDA growing 13.7% to $111.8 million, while strategically repurchasing $100 million in shares. Recent guidance upgrade to $5.4-$5.6 billion 2025 revenue reflects confidence in continued expansion of home infusion services demand.

• Q1 gross profit increased 10.3% to $263.1 million despite industry cost pressures.
• Operating cash flow improved by 89.5% YoY (-$7.2M vs -$68.8M in Q1 2024).
• Trading at 16.7x P/E ratio (33% below healthcare services sector average).

AAON AAON

Polen Capital bought $3.04M of AAON in Q2 2024. AAON reported 22.9% YoY sales growth to $322.1M in Q1 2025, though gross margins contracted to 26.8% from 35.2% due to BASX production scaling costs. While BASX-branded equipment sales surged 374.8% YoY on data center demand, AAON-branded sales fell 19.1% from refrigerant supply chain constraints. Strategic facility expansions and record $1B backlog (+83.9% YoY) position the company for H2 recovery, driving an 8.56% pre-market stock jump post-earnings.

• BASX-branded equipment sales grew 374.8% YoY to $132.6M, now representing 41% of total revenue.
• Total backlog reached $1.0B, up 83.9% YoY and 18.4% QoQ, with BASX orders driving 44.9% AAON-branded backlog growth.
• Gross margin improved 75bps QoQ to 26.8% as Memphis facility ramped up BASX production efficiency.

Installed Building Products IBP

Polen Capital bought $2.69M of Installed Building Products in Q2 2024. Installed Building Products reported Q1 2025 net revenue of $684.8 million, surpassing consensus estimates of $679.27 million. The company returned $91.1 million to shareholders through buybacks and dividends while executing strategic acquisitions. Despite a 3.1% net income growth in Q4 2024, Q1 2025 shows improved operational momentum with a 6% dividend increase and $100M+ acquisition pipeline for 2025.

• Q1 2025 revenue of $684.8M exceeded estimates by 0.8% despite downward revisions to full-year projections.
• Returned $91.1M to shareholders in Q1 through $34.3M share repurchases and $56.8M dividends.
• Acquired $10M annual revenue through two strategic purchases in Q1, maintaining >$100M acquisition target for 2025.

Repligen RGEN

Polen Capital bought $1.84M of Repligen in Q2 2024. Repligen delivered strong Q1 2025 results with $169 million revenue (+10% YoY) and 14% organic non-COVID growth, driven by double-digit order growth across all franchises. Adjusted EPS of $0.39 beat estimates by 11%, fueled by 72% surge in adjusted operating income and strategic acquisitions like 908 Devices' bioprocessing portfolio. The company reaffirmed full-year organic revenue guidance of 9.5%-13.5%, demonstrating resilience despite macroeconomic headwinds.

• 14% organic revenue growth (non-COVID) with 20% YoY order growth in Q1 2025.
• Adjusted EPS of $0.39 beat estimates by 11.4% and grew 29% YoY.
• 72% YoY increase in adjusted operating income with $697 million cash reserves.

Applied Industrial AIT

Polen Capital bought $1.47M of Applied Industrial in Q2 2024. Applied Industrial Technologies reported mixed fiscal Q1 2025 results with $1.1 billion in sales (+0.3% YoY) but organic decline of 3.0%, while raising full-year EPS guidance. Margins contracted (EBITDA -3.3% YoY) amid softer volumes and tough comparisons, though cash flow generation strengthened significantly. The company is seeing stabilization in Service Center sales and growth opportunities in Automation/technology verticals, while maintaining cost discipline.

• Free cash flow nearly doubled YoY to $122.2 million in Q1, supporting capital deployment opportunities.
• Increased FY25 EPS guidance to $9.25-$10.00 (from prior range) despite maintaining sales/EBITDA margin outlook.
• Q1 EBITDA margin of 11.7% declined 50bps YoY (129.0M vs 133.4M) on mix shifts and lower volumes.

Construction Partners ROAD

Polen Capital bought $1.41M of Construction Partners in Q2 2024. Construction Partners (ROAD) delivered robust performance in its last two quarters, driven by strategic acquisitions and strong organic growth in Sunbelt markets. Q2 FY2025 revenue surged 54% YoY with Adjusted EBITDA up 135%, while Q1 saw 41.6% revenue growth and 39% EPS beat. The company raised its FY25 outlook amid a record $2.84 billion backlog, positioning it for continued infrastructure demand tailwinds.

• 54% YoY revenue growth in Q2 FY2025 with 135% Adjusted EBITDA increase.
• Record project backlog of $2.84 billion (up 33% from FY24) signals strong future revenue visibility.
• Stock gained 7.01% post-Q1 earnings and maintains momentum from acquisition-driven market expansion.

Ollie's Bargain Outlet OLLI

Polen Capital bought $1.26M of Ollie's Bargain Outlet in Q2 2024. Ollie's Bargain Outlet Holdings (OLLI) is poised to report Q1 fiscal 2025 results on June 3, 2025, with investors anticipating updates on its expansion strategy following the completion of its leadership succession plan. The company has grown to 559 stores across 31 states as of February 2025, reflecting a 4.3% increase in store count year-over-year. Recent executive changes including Eric van der Valk's appointment as CEO in February 2025 mark a strategic shift toward accelerating growth in the closeout retail sector.

• Q1 fiscal 2025 earnings release scheduled for June 3, 2025 (pre-market) with conference call at 8:30 AM ET.
• Leadership transition completed with Eric van der Valk becoming CEO in Q1 2025, succeeding John Swygert.
• Store count increased to 559 locations as of February 2025, adding 21 net new stores in the last 6 months.

Kaspi KKS.F

Polen Capital bought $1.25M of Kaspi in Q2 2024. Kaspi.kz demonstrated robust growth in Q1 2025 with 21% YoY revenue growth and 16% net income growth, driven by strong performance in its Marketplace and Payments platforms. The company revised its full-year net income growth guidance downward from 20% to 15% YoY due to macroeconomic pressures, though strategic moves like its Hepsiburada acquisition position it for regional expansion. While payments transaction volume grew 23% YoY, fintech profit growth slowed to 8% YoY from additional provisioning requirements.

• Marketplace revenue outpaced GMV growth by 13 percentage points (33% vs 20% YoY).
• Completed $600M initial payment for 65.41% stake in Turkish e-commerce leader Hepsiburada.
• Raised $650M through 5-year Eurobond at 6.25% coupon rate to fund expansion.

Kinsale Capital Group KNSL

Polen Capital bought $891.92K of Kinsale Capital Group in Q2 2024. Kinsale Capital Group (KNSL) reported mixed Q1 2025 results, with EPS beating estimates by 18.9% ($3.83 vs. $3.22 forecast) but revenue falling short by 3.6% ($381.7M vs. $396M expected), triggering a 13.15% stock decline. While gross written premiums grew 7.9% YoY to $484.3M, its Commercial Property division saw an 18.4% decline due to market competition. The company maintains underwriting strength with a combined ratio of 82.1%, though Q1 net income dropped 9.8% YoY to $89.2M amid $17.8M in catastrophe losses.

• EPS grew 6% YoY to $3.83 in Q1 2025 while net operating earnings rose 5.9% to $86.4M.
• Commercial Property premiums fell 18.4% YoY, though non-Commercial Property segments grew 16.7%.
• Stock trades at 13.8% below 52-week high after post-earnings drop, despite 34% YTD gain through April.

Tetra Tech TTEK

Polen Capital bought $676.62K of Tetra Tech in Q2 2024. Tetra Tech (TTEK) reported strong Q1 FY2025 results with 18% YoY revenue growth to $1.2B and EPS of $0.35, beating forecasts, but its stock declined 5.67% post-earnings due to market reactions. The company maintains a record $5.44B backlog and increased its dividend by 12%, signaling confidence in sustained demand for water/environmental infrastructure services. While fundamentals remain robust, recent underperformance (-9.7% price target cut) reflects investor concerns about growth sustainability amid mixed guidance.

• Q1 FY2025 EPS of $0.35 surpassed estimates by $0.01, while revenue hit $1.2B (18% YoY growth).
• Backlog grew 15% YoY to $5.44B, driven by $1B+ in new contracts for water/flood control projects.
• Stock declined 12.2% YTD despite earnings beat, with Q2 revenue guidance of $1.0B-$1.1B suggesting potential slowdown.

Meta META

Polen Capital bought $407.33K of Meta in Q2 2024. Meta reported strong Q1 2025 results with revenue of $42.31B (up 16% YoY) and net income of $16.64B (35% YoY growth), driven by advertising momentum and cost discipline. The company’s operating margin expanded to 41% from 38% YoY, while its AI initiatives gained traction with nearly 1B monthly active users for Meta AI. Shares rallied 5% post-earnings as results exceeded expectations, though full-year 2025 performance will depend on AI monetization and Reality Labs investments.

• Diluted EPS surged 35% YoY to $6.43, beating estimates.
• Advertising revenue grew 16% YoY to $41.39B, accounting for 98% of total sales.
• Reality Labs revenue declined 6% YoY to $412M, but Meta AI adoption signals long-term growth potential.

Holdings at the end of Q2 2024

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