Here’s Why Alphabet (GOOG) Became Polen Capital’s Largest Q2 Detractor

Polen Capital, an investment management firm, published its “Polen Global Growth Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. During the second quarter of 2022, the Global Growth Composite Portfolio (the “Portfolio”) was down -18.08% and -18.34% gross and net of fees, respectively, versus a decline of -15.65% for the MSCI ACWI (the “Index”). Since inception, the Portfolio has compounded at an annualized rate of 11.04% and 10.12%, gross and net of fees, versus 6.88% for the Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Polen Global Growth mentioned Alphabet Inc. (NASDAQ:GOOG) and explained its insights for the company. Founded in 2015, Alphabet Inc. (NASDAQ:GOOG) is a Mountain View, California-based multinational technology conglomerate holding company with a $1.3 trillion market capitalization. Alphabet Inc. (NASDAQ:GOOG) delivered a -29.33% return since the beginning of the year, while its 12-month returns are down by -26.54%. The stock closed at $102.24 per share on October 06, 2022.

Here is what Polen Global Growth has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q2 2022 investor letter:

Alphabet, a large weighting in the Portfolio, was the top detractor during the period, as e-commerce growth slowed during the quarter on tough comps from the prior year. That said, Alphabet continues to deliver robust revenue and profit growth. Google Cloud Platform (GCP) continues to grow at a healthy pace, and we do not believe the share price decline was a reflection of weak business performance.”

Pixabay/Public Domain

Our calculations show that Alphabet Inc. (NASDAQ:GOOG) ranks 6th on our list of the 30 Most Popular Stocks Among Hedge Funds. Alphabet Inc. (NASDAQ:GOOG) was in 153 hedge fund portfolios at the end of the second quarter of 2022, compared to 160 funds in the previous quarter. Alphabet Inc. (NASDAQ:GOOG) delivered a -14.30% return in the past 3 months.

In September 2022, we also shared another hedge fund’s views on Alphabet Inc. (NASDAQ:GOOG) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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