Polen Capital's Trades and Holdings in Q4 2024

We break down the stocks Polen Capital bought, sold, and held in Q4 2024, including their holdings at the end of the quarter. All data sourced from Polen Capital's 13F filed on February 10, 2025.

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.

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Wikipedia on Polen Capital

Portfolio Changes in Q4 2024

New positions

Polen Capital initiated 14 new positions during Q4 2024, with CoStar (CSGP) representing the largest new investment at $465 million. Other notable new holdings include Willis Towers Watson (WTW) at $40 million, Spotify (SPOT) at $27 million, Nu Holdings (NU) at $23 million, and Monday.com (MNDY) at $13 million, demonstrating continued focus on technology and data-driven businesses.

Bought

Polen Capital significantly increased its position in Eli Lilly (LLY) by over 800,000 shares, representing a massive 130% return on the position. The firm also added substantially to Oracle (ORCL) with nearly 2 million additional shares and increased its Zoetis (ZTS) holdings by over 1 million shares, showing conviction in these healthcare and enterprise technology plays.

Sold

Polen Capital reduced several major positions, most notably trimming Amazon (AMZN) by over 6 million shares and Shopify (SHOP) by nearly 2 million shares. The firm also significantly reduced exposure to Alphabet (GOOG), Abbott (ABT), UnitedHealth (UNH), Microsoft (MSFT), and ServiceNow (NOW), while completely exiting positions in Euronet (EEFT), Option Care Health (OPCH), and NV5 Global (NVEE).

New Investments in Q4 2024

CoStar CSGP

Polen Capital bought $465.13M of CoStar in Q4 2024. CoStar Group reported 12% year-over-year revenue growth in Q1 2025 to $732.2 million, continuing its 56-quarter streak of double-digit growth. While posting a $14.8 million net loss due to $31 million in acquisition costs for Matterport, core segments showed strong momentum including 68% YoY net new bookings growth in CoStar's commercial data division. The company is aggressively expanding its residential footprint with Homes.com becoming the #2 U.S. residential platform (104M monthly visitors) while integrating Matterport's 3D technology.

• 56 consecutive quarters of double-digit revenue growth achieved in Q1 2025.
• LoopNet commercial marketplace saw 200% YoY net new bookings growth - best since Q3 2022.
• Apartments.com added 4,300 properties in Q1, largest quarterly expansion since 2016.

Willis Towers Watson WTW

Polen Capital bought $40.28M of Willis Towers Watson in Q4 2024. Willis Towers Watson reported mixed Q1 2025 results with $2.22 billion revenue (-5% YoY) due to the TRANZACT sale, but achieved 5% organic growth and 740bps operating margin expansion to 19.4%. While adjusted EPS remained flat at $3.13, net income grew 23% to $239 million. The company demonstrates operational efficiency improvements offsetting divestiture impacts.

• Organic revenue grew 5% in Q1 2025 despite 5% overall revenue decline from TRANZACT divestment.
• Operating margin expanded 740 basis points to 19.4% through cost optimization efforts.
• Repurchased 607,221 shares for $200 million while maintaining flat adjusted EPS of $3.13.

Spotify SPOT

Polen Capital bought $27.23M of Spotify in Q4 2024. Spotify demonstrated robust growth in Q1 2025, with 10% YoY monthly active user growth to 678 million and 12% YoY premium subscriber growth to 268 million, exceeding guidance by 3 million subscribers. Revenue grew 15% YoY to €4.19 billion, though operating profit of €509 million fell short of expectations. Strong ad-supported revenue growth (8% YoY) and record free cash flow generation (€534 million in Q1) underscore improving monetization and financial health.

• Premium subscribers grew 12% YoY to 268 million, outperforming guidance by 3 million.
• Q1 revenue reached €4.19 billion (+15% YoY), driven by 16% growth in subscription revenue.
• Free cash flow hit €534 million in Q1, with trailing-twelve-month generation at €2.6 billion.

Nu Holdings NU

Polen Capital bought $23.24M of Nu Holdings in Q4 2024. Nu Holdings Ltd. (NU) reported robust Q1 2025 results with 40% YoY revenue growth to $3.2B and 47% net income growth to $557.2M, though sequential gross profit declined 3% due to credit loss allowances and deposit expansion costs in Mexico. While net interest margin compressed to 17.5% from strategic investments in new markets, deposits grew 48% YoY to $31.6B. The stock rallied 9.1% post-earnings despite EPS missing estimates by 1.2%, driven by market share gains in Brazil and scaling operations in Colombia/Mexico.

• Q1 revenue reached $3.2B (40% YoY FXN growth), while gross profit margin fell to 40.6% from 44.2% in Q4 2024.
• Net income surged 47% YoY to $557.2M, partly boosted by a $47M one-time tax adjustment.
• EPS of $0.12 missed estimates by 1.2%, but shares gained 9.1% week-over-week on user growth (94M+ customers).

Monday.com MNDY

Polen Capital bought $12.52M of Monday.com in Q4 2024. Monday.com reported strong Q1 2025 results with 30% year-over-year revenue growth to $282.3 million and EPS of $1.10 beating estimates by 38%. The company shows accelerating momentum with sequential revenue growth from Q4 2024 ($267.98M) to Q1 2025 ($282.3M), driven by enterprise adoption and ~245,000 customers as of December 2024. Its recent earnings beat and raised guidance following the May 12 results announcement position it for sustained value appreciation.

• Q1 2025 revenue of $282.3 million surpassed analyst expectations by $15.6 million (5.8% beat).
• EPS grew 38% above consensus estimates ($1.10 vs $0.72 expected) in Q1 2025.
• Enterprise customers (>$50k ARR) grew to unspecified but 'increasing' levels as of March 2025, indicating upmarket traction.

WillScot WSC

Polen Capital bought $4.18M of WillScot in Q4 2024. WillScot reported Q1 2025 revenue of $560 million, exceeding forecasts by 0.8%, though EPS of $0.24 missed expectations by $0.03. Despite mixed results, shares rose 4.96% post-announcement as investors focused on strategic initiatives like Value-Added Products (VAPS) and a 7% YoY order book growth. The company reaffirmed its full-year outlook targeting $2.275B-$2.475B revenue and $1.0B-$1.09B Adjusted EBITDA, while maintaining industry-leading 53.7% gross margins.

• Q1 revenue beat analyst forecasts by $4.4M (0.8%) despite modular/storage unit headwinds.
• Stock gained 12.2% over the last 6 months (S&P 500 +5.1%) driven by 40.9% Adjusted EBITDA margins.
• Returned $45M to shareholders ($32M buybacks, $13M dividends) while growing pending orders 7% YoY.

Fabrinet FN

Polen Capital bought $2.77M of Fabrinet in Q4 2024. Fabrinet (FN) demonstrated strong performance in Q1 FY2025 with record revenue of $804.2 million, a 17% year-over-year increase, driven by broad-based growth across all product areas, including a rebound in telecom. The company’s momentum continued into Q3 FY2025, beating EPS estimates by $0.05 and reporting a 19.2% YoY revenue surge to $871.8 million, fueled by AI infrastructure demand and 5G deployments. Fabrinet’s precision manufacturing capabilities and raised guidance reflect optimism for sustained growth in optical networking and advanced technologies.

• Q1 FY2025 revenue surged 17% year-over-year to $804.2 million, exceeding guidance and marking the first telecom growth in multiple quarters.
• GAAP EPS rose 19.7% YoY to $2.13 (from $1.78), while non-GAAP EPS increased 19.5% to $2.39, driven by margin expansion.
• Q3 FY2025 revenue beat estimates by $14.68 million ($871.8M vs. $857.12M consensus), with EPS of $2.52 topping expectations by $0.05.

Belden BDC

Polen Capital bought $2.72M of Belden in Q4 2024. Belden (BDC) delivered strong performance in Q1 2025 with 17% YoY revenue growth to $625 million and adjusted EPS of $1.60, beating estimates by 11 cents. The company’s focus on reindustrialization and automation trends drove an 18% YoY order growth and a book-to-bill ratio of 1.05, signaling sustained demand. Shares rose 0.72% post-earnings as markets reacted to robust fundamentals and upward analyst revisions.

• Q1 2025 EPS of $1.60 exceeded forecasts by 11% ($0.12/share).
• Revenue grew 17% YoY ($625M), with organic growth accelerating to 11%.
• Orders increased 18% YoY, supported by industrial automation tailwinds.

Colliers International CIGI

Polen Capital bought $1.12M of Colliers International in Q4 2024. Colliers International reported 14% revenue growth to $1.14 billion in Q1 2025, driven by a 59% surge in its Engineering segment from acquisitions and internal expansion. While adjusted EBITDA rose 7% to $116 million and adjusted EPS grew 13% to $0.87, GAAP results showed a net loss of $0.08 per share amid restructuring costs. The company is gaining momentum in high-margin services, positioning it for sustained growth despite short-term profitability pressures.

• Q1 2025 revenue increased 14% YoY ($1.14B) with 16% growth in local currencies.
• Engineering segment revenue grew 59% YoY through strategic acquisitions and 4% internal growth.
• Adjusted EPS climbed 13% to $0.87 despite GAAP net loss of $0.08 per share.

Entegris ENTG

Polen Capital bought $1.09M of Entegris in Q4 2024. Entegris reported mixed Q1 2025 results with $770.3M revenue (+5% YoY ex-divestitures) missing estimates by 3.4%, driving a 13.14% stock decline. While Advanced Packaging revenue doubled and gross margins held firm at 46.1%, sequential sales dropped 9% amid semiconductor market softness. Near-term headwinds from China tariffs could impact Q2 revenue by up to $50M, though long-term drivers in materials purity remain intact.

• EPS of $0.67 missed estimates by $0.01 despite 39% YoY net income growth to $62.9M.
• Advanced Packaging business projected to grow 25%+ in 2025 despite broader semiconductor weakness.
• Stock trades at 34.6x P/E (InvestingPro) after 13% post-earnings drop, still above industry average.

Bentley Systems BSY

Polen Capital bought $999.71K of Bentley Systems in Q4 2024. Bentley Systems (BSY) delivered strong Q1 2025 results, with revenue reaching $371 million (beating forecasts by $4.6 million) and EPS of $0.35 surpassing estimates by $0.05. The company demonstrated accelerating growth with subscription revenues up 11% YoY, driven by adoption of its digital twin technology and AI-driven solutions. Free cash flow grew 7.4% YoY to $216.4 million, underscoring operational efficiency.

• Q1 2025 EPS of $0.35 beat analyst estimates by 16.7% ($0.30 forecast).
• 10% YoY revenue growth continues 5-year CAGR of 13%, with subscriptions now comprising 92% of total revenue.
• Free cash flow increased to $216.4 million from $201.4 million in Q1 2024, supporting continued R&D investment.

Pure Storage PSTG

Polen Capital bought $653.8K of Pure Storage in Q4 2024. Pure Storage demonstrated strong growth in its latest quarter, with Q1 fiscal 2025 revenue reaching $693.5 million, up 18% year-over-year. The company continues to shift toward recurring revenue streams, with subscription services ARR surpassing $1.4 billion. Recent innovations in unified data storage platforms position Pure Storage to capitalize on enterprise AI and hybrid cloud adoption trends.

• Q1 product revenue grew 12.4% YoY to $347.4 million while subscription services revenue surged 23.4% YoY to $346.1 million.
• Full-year fiscal 2025 revenue guidance implies 12% YoY growth to $3.2 billion, with subscription services projected to grow faster at 22% YoY.
• Analysts project 61.36% EPS growth for FY2025, from $0.44 to $0.71 per share, driven by margin expansion in subscription services.

Cellebrite CLBT

Polen Capital bought $222.39K of Cellebrite in Q4 2024. Cellebrite (CLBT) demonstrated strong growth in Q1 2025, with revenue increasing 20% YoY to $107.5 million, driven by a 21% surge in subscription revenue. Annual Recurring Revenue (ARR) grew 23% to $408 million, accelerating from 25% ARR growth in Q4 2024. Recent FedRAMP High Ready certification for its government cloud platform positions the company to capture more public sector contracts.

• Subscription revenue growth accelerated to 21% in Q1 2025 vs 21% in Q4 2024.
• Achieved $408M ARR in Q1 2025, up from $395.9M in Q4 2024.
• Maintained strong profitability with 25% adjusted EBITDA margin in 2024.

Ferguson Enterprises FERG

Polen Capital bought $214.88K of Ferguson Enterprises in Q4 2024. Ferguson Enterprises (FERG) demonstrated resilience in Q1 2025 with $7.8 billion revenue (+0.8% YoY) despite commodity deflation headwinds, though adjusted diluted EPS fell 7.5% to $2.45. The company maintained full-year guidance while navigating wage inflation and strategic investments, supported by 3% volume growth and $256M in share repurchases. Recent acquisitions and a 5% dividend increase highlight capital allocation discipline amid mixed residential/commercial demand.

• Q1 operating margin declined 50 bps YoY to 9.1% due to wage inflation and growth investments.
• Completed $256M in share buybacks (1.2% of market cap) while increasing dividend to $0.83 quarterly (+5% YoY).
• 3% organic volume growth offset 2% price deflation, with HVAC/waterworks outperforming residential markets.

Holdings at the end of Q4 2024

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