We have a clear investment discipline and a clear compass...After delivering a strong first quarter performance, Polen Capital Management's Focus Growth Portfolio returned -2.62% gross of fees in second quarter 2016. The Russell 1000 Growth and S&P 500 indicies returned 0.61% and 2.46% respectively. Read on for an excerpt of Polen Capital's 2Q 2016 commentary, or view the entire document here.
- The market has been basically flat for the past year and a half now with periodic bouts of volatility (swoons and recoveries). Given the strong preceding returns that followed the financial crisis and greatly outpaced the underlying earnings growth during that period, we are not surprised to see the market going sideways and consolidating a bit.
- We believe that most investors’ approach is to create returns through their activity. We take great comfort in the fact that we are not trying to time the market or speculate in any way and we hope that you do too.
- We think it is important to realize that short‐term market movements tell you a lot more about what people are thinking and what they are doing to create returns than what the underlying fundamentals support or what is actually going to produce the best return over time.
- Although it has been a more macro‐driven environment since the financial crisis, which is not the best environment for our fundamentally driven strategy, we have managed to outperform by owning the best growth companies for the long‐term.