Polen Capital's Trades and Holdings in Q4 2024

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.

New positions: In Q4 2024, Polen Capital established 14 new positions, with the largest being CoStar Group, Inc. (CSGP) at $465.1M, followed by Willis Towers Watson Public Limited Company (WTW) at $40.3M, Spotify Technology S.A. (SPOT) at $27.2M, Nu Holdings Ltd. (NU) at $23.2M, and monday.com Ltd. (MNDY) at $12.5M.

Bought: The firm significantly increased its position in Eli Lilly and Company (LLY) by adding 805,434 shares (130.4% return), while also adding to Oracle Corporation (ORCL) with 1,955,764 additional shares (19.6% return) and Zoetis Inc. (ZTS) with 1,116,541 more shares.

Sold: Polen Capital reduced its position in several large tech holdings, most notably cutting Amazon.com, Inc. (AMZN) by 6.2M shares, Alphabet Inc. (GOOG) by 1.7M shares, UnitedHealth Group Incorporated (UNH) by 870,829 shares (resulting in a -51.2% return), and completely liquidating positions in 8 companies including Euronet Worldwide, Inc. (EEFT), Option Care Health, Inc. (OPCH), and NV5 Global, Inc. (NVEE).

Website: www.polencapital.com

Wikipedia: en.wikipedia.org/wiki/Polen_Capital

Holdings on December 31, 2024

New Positions

CoStar Group, Inc. CSGP

Polen Capital bought 6,497,188 shares of CoStar Group, Inc. in Q4 2024. CoStar Group, Inc. has demonstrated 12% YoY revenue growth in Q1 2025, though its EPS fell short of expectations. The stock trades near the lower end of its 52-week range ($69.29-$88.48), with analysts projecting a 16.65% upside to its average price target. While showing strong top-line expansion, profitability metrics like ROE (1.47%) remain modest.

• Revenue grew 12% YoY to $732.2M in Q1 2025 despite EPS miss.
• Forward P/E ratio of 56.45 reflects high growth expectations.
• 16.65% upside to average analyst target price of $87.70.

Willis Towers Watson Public Limited Company WTW

Polen Capital bought 128,586 shares of Willis Towers Watson Public Limited Company in Q4 2024. Willis Towers Watson (WTW) demonstrated mixed performance over the last 12 months, with full-year 2024 revenue growing 5% to $9.9 billion despite a 5% YoY decline in Q1 2025 revenue. While net income surged 24% in Q1 2025 driven by margin expansion, recent results missed analyst expectations and shares have declined 6.8% over the past week. Strategic moves like $901 million in share buybacks and the completion of their transformation program position the company for its 3.7% annualized growth forecast, below the industry's 4.8% projection.

• Full-year 2024 revenue grew 5% to $9.9 billion with 5% organic growth across segments.
• Q1 2025 net income increased 24% YoY to $235 million despite 5% revenue decline.
• Shares down 6.8% over past week after missing Q1 revenue estimates by 2.9% and EPS by 26%.

Spotify Technology S.A. SPOT

Polen Capital bought 60,861 shares of Spotify Technology S.A. in Q4 2024. Spotify Technology S.A. has demonstrated strong stock performance over the last 12 months, with a 38.6% YTD total return as of May 13, 2025, ranking in the top 10% of its industry. The stock trades at a 101.46 normalized P/E ratio, significantly higher than peers like Apple (33.40) and Sirius XM (7.34), reflecting growth expectations. Despite premium valuation metrics, Spotify maintains solid liquidity with a 1.71 current ratio, outperforming both Apple and Sirius XM in short-term financial health.

• 38.6% YTD total return through May 13, 2025, outperforming 90% of industry peers.
• 7.59 price/sales ratio exceeds Sirius XM's 0.96 but trails Apple's 9.00, positioning it mid-pack among tech giants.
• 22.18% return on invested capital (normalized) demonstrates efficient capital allocation compared to Sirius XM's 6.74%.

Nu Holdings Ltd. NU

Polen Capital bought 2,243,471 shares of Nu Holdings Ltd. in Q4 2024. Nu Holdings Ltd. has demonstrated robust financial performance over the past 12 months, driven by rapid customer acquisition and scalable operations. Revenue surged 58% YoY to $11.51 billion in FY2024, while net income nearly doubled to $1.97 billion, achieving an industry-leading 29% annualized ROE. The company continues to capitalize on Latin America's underpenetrated digital banking market through disciplined credit expansion and operational efficiency gains.

• Gross profit increased 44% YoY in Q4 2024 to $1.36 billion, with full-year gross profit reaching $5.24 billion.
• Adjusted net income grew 85% YoY in Q4 2024 to $610.1 million, supported by a 32% annualized adjusted ROE.
• Customer base has expanded 5x since IPO, with analysts projecting EBIT margins to rise from 24% in 2024 to 35% by 2034 through operating leverage.

monday.com Ltd. MNDY

Polen Capital bought 53,186 shares of monday.com Ltd. in Q4 2024. monday.com Ltd. has demonstrated robust growth over the past year, with Q1 2025 revenue reaching $282.3 million, a 30% year-over-year increase, and record GAAP/non-GAAP operating profitability. The company’s net dollar retention rate of 112% reflects strong customer expansion, while strategic investments in AI-powered features and enterprise solutions position it for sustained momentum. Analysts maintain a Strong Buy rating with a 12-month price target of $340.57, signaling confidence in its upward trajectory.

• Revenue grew 32% YoY in Q4 2024 to $268.0 million, surpassing $1 billion in annual recurring revenue.
• Adjusted free cash flow hit a record high in Q1 2025, underscoring operational efficiency.
• Stock price surged ~60% over the last 12 months, outperforming the Nasdaq Composite Index.

WillScot Holdings Corporation WSC

Polen Capital bought 125,024 shares of WillScot Holdings Corporation in Q4 2024. WillScot Holdings Corporation (WSC) delivered record 2024 revenue of $2.4 billion with 44.3% Adjusted EBITDA margins, though Q1 2025 results show moderating growth with revenue declining 4.7% YoY to $559.6 million. The company maintained strong cash generation with $145 million Adjusted Free Cash Flow in Q1 2025 at a 25.9% margin, enabling $45 million in shareholder returns. Recent strategic moves include progressing their acquisition pipeline and restructuring initiatives to drive long-term value.

• 2024 full-year Adjusted EBITDA grew marginally to $1.06 billion (44.3% margin) from $1.06 billion in 2023.
• Q1 2025 Adjusted EBITDA declined 7.8% YoY to $228.8 million with margins contracting 130bps to 40.9%.
• Achieved 26% Adjusted Free Cash Flow margin in Q1 2025 while reducing leverage to 3.4x EBITDA.

Fabrinet FN

Polen Capital bought 12,605 shares of Fabrinet in Q4 2024. Fabrinet (FN) has demonstrated strong revenue growth over the last 12 months, with Q3 FY2025 revenue reaching $871.8 million, a 19% year-over-year increase. The stock has risen 6.30% in a single trading session (May 12, 2025) and analysts project an average 11.76% upside to $240.71. Recent quarterly results exceeded guidance, driven by robust telecom sector performance offsetting datacom softness.

• Q3 FY2025 revenue grew 19% YoY to $871.8 million, surpassing guidance.
• Non-GAAP EPS increased 5.4% YoY to $2.52 in Q3 FY2025.
• Analysts maintain Buy rating with price targets suggesting +30% potential upside at the high end ($280 target).

Belden Inc. BDC

Polen Capital bought 24,182 shares of Belden Inc. in Q4 2024. Belden Inc. has demonstrated strong financial recovery and growth over the past 12 months, driven by organic expansion and strategic capital allocation. Despite a slight full-year 2024 revenue dip to $2.46 billion, the company achieved 21% YoY revenue growth in Q4 2024 and 17% growth in Q1 2025, with both segments showing double-digit organic growth. Analysts project an 11.91% upside to the stock price, supported by improved execution and $223 million in annual free cash flow for strategic investments.

• Q4 2024 revenue surged 21% YoY to $666 million with 14% organic growth across both business segments .
• Adjusted EPS grew 32% YoY in Q4 2024 ($1.92) and 29% YoY in Q1 2025 ($1.60), exceeding guidance .
• Analysts forecast 12-month price target of $126.83 (+11.91%) with a Strong Buy consensus rating .

Colliers International Group Inc. CIGI

Polen Capital bought 8,226 shares of Colliers International Group Inc. in Q4 2024. Colliers International Group Inc. reported $4.8 billion in 2024 revenues with strong momentum across its diversified business segments. The company achieved 22% revenue growth in Q4 2024 and 61% local currency growth in Engineering revenues during Q1 2025, while surpassing $100 billion in assets under management (AUM) for the first time. Recent acquisitions and organic growth in recurring revenue streams position the company for sustained value creation.

• Engineering revenues surged 59% YoY ($377.9M) in Q1 2025 with 86% local currency Adjusted EBITDA growth.
• Investment Management AUM crossed $100 billion milestone in Q1 2025, up from $98.9B in Q4 2024.
• Q4 2024 showed 14% Adjusted EBITDA growth ($225.3M) despite foreign exchange headwinds impacting EPS by $0.02.

Entegris, Inc. ENTG

Polen Capital bought 11,026 shares of Entegris, Inc. in Q4 2024. Entegris, Inc. has faced a challenging 12-month period with its stock declining -17.05% in 2024, though it has shown recent resilience with a 7.9% intraday gain on May 12, 2025. The company's Q1 2025 revenue of $773.2 million fell short of estimates, but strategic initiatives like global supply chain optimization and POR wins position it for long-term growth in semiconductor materials. Despite macroeconomic headwinds from tariffs, Entegris maintains premium valuations with a P/E ratio of 40.8, reflecting investor confidence in its materials science leadership.

• Q1 2025 revenue missed estimates by 5.1% ($773.2M actual vs. $815.1M expected) with EPS of $0.67 vs. $0.69 estimate.
• Maintains elevated valuation multiples: P/E ratio of 40.8 and price-to-sales ratio of 3.69 despite recent underperformance.
• Stock surged 7.9% on May 12, 2025 following CEO commentary about tariff mitigation strategies and record POR wins in advanced node semiconductors.

Bentley Systems, Incorporated BSY

Polen Capital bought 21,407 shares of Bentley Systems, Incorporated in Q4 2024. Bentley Systems (BSY) has demonstrated robust financial performance over the past year, driven by 12% constant currency ARR growth and 15.8% year-over-year subscriptions revenue growth in Q4 2024. The company exceeded Q1 2025 expectations with 9.7% revenue growth and 30% net income growth, though its 54.16 normalized P/E ratio remains elevated compared to peers like Oracle (30.12). Recent earnings beats and upward stock momentum (7.6% gain post-Q1 results) reflect market confidence in its infrastructure software leadership.

• Annualized Recurring Revenue grew 12% year-over-year to $1.28B as of December 2024.
• Q1 2025 EPS of $0.29 surpassed estimates by 15% and increased 32% from prior year.
• Shares trade at 12.85 price/sales ratio, premium to Oracle (9.14) but below Aspen Technology (13.42).

Pure Storage, Inc. PSTG

Polen Capital bought 10,643 shares of Pure Storage, Inc. in Q4 2024. Pure Storage, Inc. delivered strong performance in fiscal 2025, surpassing $3 billion in annual revenue for the first time with 12% YoY growth, driven by its Fusion platform and subscription services. The company gained momentum through a strategic hyperscaler partnership and AI-driven storage solutions, reflected in a 20% single-day stock surge post-earnings. Analysts project 26.22% upside to their $69.57 price target as flash storage adoption accelerates.

• Revenue grew 12% to $3.17B in FY2025 with 74% earnings growth year-over-year.
• Secured design win with top-four hyperscaler (rumored Meta) driving 80% YTD stock gain through May 2025.
• Analysts forecast 26.22% upside to $69.57 target (+35.7% annual EPS growth expected).

Cellebrite DI Ltd. CLBT

Polen Capital bought 10,095 shares of Cellebrite DI Ltd. in Q4 2024. Cellebrite DI Ltd. has demonstrated strong financial performance over the past year, with Q1 2025 revenue growing 20% year-over-year to $107.5 million, driven by a 21% increase in subscription revenue. The company's annual recurring revenue (ARR) surged 23% to $408 million, reflecting robust demand for its digital intelligence solutions. Recent upward revisions to full-year 2025 EPS estimates from $0.21 to $0.36 highlight improving profitability expectations.

• Q1 2025 revenue increased 20% year-over-year to $107.5 million.
• Annual recurring revenue (ARR) grew 23% to $408 million, underscoring sustained growth momentum.
• Full-year 2025 EPS estimates were revised upward by 43%, from $0.21 to $0.36 per share.

Ferguson plc FERG

Polen Capital bought 1,238 shares of Ferguson plc in Q4 2024. Ferguson plc has underperformed the broader market over the past year, declining from its 52-week high of $225.63 to a current price of $177.90, while the S&P 500 gained 11.6% during the same period. Despite this, the company maintains solid fundamentals with $29.90B in TTM revenue and $1.64B in earnings, though its 79.2% debt/equity ratio raises some liquidity concerns. Recent technical indicators suggest potential upside, with the stock trading 6.18% below fair value estimates and analysts forecasting a 6.6% price increase to $182.49 by June 2025.

• EPS of $8.25 with net profit margin of 5.49%.
• Trades at 21.2x P/E and 1.2x P/S, below historical averages.
• Price declined 21.2% from 52-week high but shows 6.55% YTD gain.