Polen Capital Management, a value-driven, concentrated, long-term investment management firm, published its ‘Polen Global Growth’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 7.70% was recorded by the fund for the Q4 of 2020, below its MSCI All-Country World benchmark that delivered a 14.69% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Polen Global Growth, in their Q4 2020 Investor Letter said that Microsoft Corporation (NASDAQ: MSFT) was one of the top contributors for the fund during the fourth quarter of 2020. Microsoft Corporation is a company that develops, manufactures, and sells computer software and related services. It has a $1.8 trillion market cap. For the past 3 months, MSFT delivered an 8.18% return and settled at $242.01 per share at the closing of February 4th.
Here is what Polen Global Growth has to say about Microsoft Corporation in their investor letter:
“Microsoft continues to grow revenue and earnings at scale as it becomes increasingly dominant. Operating leverage continues to benefit shareholders, with the most recent operating margins reaching nearly 43%, up from approximately 38% a year ago. In 2019, we increased the Portfolio’s position to 6% and were rewarded as Microsoft was our top contributor for that year. For the full year 2020, it was, once again, our top contributor. Microsoft now represents the largest position in the Portfolio. Early in the pandemic, CEO Satya Nadella said, “We’ve just seen two years’ worth of digital transformation in two months,” and many of the company’s business segments continue to benefit. Notably, Microsoft 365 (Teams, Azure, Windows virtual desktop and security), Windows, Surface, and gaming are all experiencing increased demand. Free cash flow grew nearly 40% in the most recent quarter, giving the company continued ability to reinvest into long and attractive growth runways.”
Last November 2020, we published an article telling that Microsoft Corporation (NASDAQ: MSFT) was in 234 hedge fund portfolios. Its all time high statistics is 235. MSFT delivered a 31.61% return in the past 12 months.
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