Do You Think Five Below (FIVE)’s Long-Term Prospects Are Promising?

Polen Capital, an investment management company, released its “Polen Global SMID Company Growth Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned -6.59% gross and -6.64% net of fees compared to -3.55% return for the MSCI ACWI SMID Capitalization Index. Negative security selection drove the underperformance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Polen Global SMID Company Growth Strategy highlighted stocks like Five Below, Inc. (NASDAQ:FIVE) in the third quarter 2023 investor letter. Headquartered in Philadelphia, Pennsylvania, Five Below, Inc. (NASDAQ:FIVE) is a specialty value retailer. On December 18, 2023, Five Below, Inc. (NASDAQ:FIVE) stock closed at $190.60 per share. One-month return of Five Below, Inc. (NASDAQ:FIVE) was 2.14%, and its shares gained 12.47% of their value over the last 52 weeks. Five Below, Inc. (NASDAQ:FIVE) has a market capitalization of $10.52 billion.

Polen Global SMID Company Growth Strategy made the following comment about Five Below, Inc. (NASDAQ:FIVE) in its Q3 2023 investor letter:

“Discount retailer Five Below, Inc. (NASDAQ:FIVE) reported a quarter that was in line with expectations but lowered next quarter’s outlook, influenced by higher than-normal “shrink” (theft of goods). We discussed the topic of shrink with management, who is implementing measures to mitigate this, and the impact on margins. We believe these issues are manageable, and the company’s long-term prospects remain promising.”

A family happily shopping for everyday items in a specialty retail store.

Five Below, Inc. (NASDAQ:FIVE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Five Below, Inc. (NASDAQ:FIVE) at the end of third quarter which was 37 in the previous quarter.

We discussed Five Below, Inc. (NASDAQ:FIVE) in another article and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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 Disclosure: None. This article is originally published at Insider Monkey.