Here’s What Makes Olo Inc. (OLO) an Interesting Investment

Polen Capital, an investment management firm, published its “Polen U.S. Small Company Growth” third quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 1.94% was delivered by the fund for the third quarter of 2021, outperforming its Russell 2000 Growth benchmark that delivered a -5.64% return for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Polen U.S. Small Company Growth, in its Q3 2021 investor letter, mentioned Olo Inc. (NYSE: OLO) and discussed its stance on the firm. Olo Inc. is a New York, New York-based restaurant company with a $3.9 billion market capitalization. OLO delivered a -4.12% for the past month and it closed at $25.88 per share on November 22, 2021.

Here is what Polen U.S. Small Company Growth has to say about Olo Inc.  in its Q3 2021 investor letter:

“Olo, a new addition to the Portfolio during the quarter, traded lower during the period. This may have been due to an expiration of the lockup agreement for early investors in the company, who are now eligible to sell shares. We provide further details on our purchase decision in the Portfolio Activity section.

Olo is the premier B2B software partner for restaurants transitioning to the new normal of digital ordering. Olo’s scalable go-to-market strategy, which targets enterprise brands, results in highly efficient sales and marketing expense, consistent average revenue per unit (ARPU) growth, and little need to tap capital markets to fund long-term goals. The company operates a repeatable subscription-based model with a solid margin and cash flow structure, has a customer-centric and visionary management team, and has a solid track record of product line expansion.”

Photo by Brooke Lark on Unsplash

Based on our calculations, Olo Inc. (NYSE: OLO) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. OLO was in 18 hedge fund portfolios at the end of the third quarter of 2021, compared to 14 funds in the previous quarter. Olo Inc. (NYSE: OLO) delivered a -35.17% return in the past 3 months.

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