Polen Capital, an investment management company, released its second-quarter 2026 investor letter for “Polen 5Perspectives Small Growth Strategy”. A copy of the letter can be downloaded here. Polen 5Perspectives Small Growth Composite Portfolio returned 33.22% gross and 32.83% net of fees, respectively, in the second quarter of 2026, compared to the 25.71% return of the Russell 2000 Growth Index. It was an outstanding quarter for small cap stocks, defying market concerns around economic growth, trade policy, and the durability of AI investment. Ongoing debate about AI capital spending was moderated by positive announcements from hyperscalers and enterprise customers, improving investors’ confidence and increasing spending growth. The demand to build AI infrastructure is rising, impacting a broad range of companies positively, across power generation and data centers. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Polen 5Perspectives Small Growth Strategy highlighted Credo Technology Group Holding Ltd (NASDAQ:CRDO). Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a US-based semiconductor company that provides high-speed connectivity solutions for optical and electrical Ethernet and PCIe applications. On July 15, 2026, Credo Technology Group Holding Ltd (NASDAQ:CRDO) closed at $226.74 per share. One-month return of Credo Technology Group Holding Ltd (NASDAQ:CRDO) was -22.39%, and its shares gained 114.28% over the past 52 weeks. Credo Technology Group Holding Ltd (NASDAQ:CRDO) has a market capitalization of $42.28 billion.
Polen 5Perspectives Small Growth Strategy stated the following regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) in its Q2 2026 investor update:
“Credo Technology Group Holding Ltd (NASDAQ:CRDO) was among our largest relative detractors despite not being held in the Portfolio during the quarter. The company, which provides high-speed connectivity solutions used in AI and data center infrastructure, was up nearly 200% in the quarter as investors continued to reward companies viewed as key beneficiaries of accelerating AI-related capital spending. As a result, our lack of exposure to the stock negatively impacted relative performance.”
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 59 hedge fund portfolios held Credo Technology Group Holding Ltd (NASDAQ:CRDO) at the end of the first quarter, compared to 69 in the previous quarter. While we acknowledge the risk and potential of Credo Technology Group Holding Ltd (NASDAQ:CRDO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Credo Technology Group Holding Ltd (NASDAQ:CRDO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Credo Technology Group Holding Ltd (NASDAQ:CRDO) and shared the list of best performing AI stocks over the last 3 years. In addition, please check out our hedge fund investor letters Q2 2026 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.
