Here’s Why Polen Capital Exited its New Oriental Education (EDU) Position

Polen Capital, an investment management firm, published its “Polen International Growth” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of -3.72% was delivered by the fund for the third quarter of 2021, below its MSCI All Country World benchmark that delivered a -2.99% 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 International Growth, in its Q3 2021 investor letter, mentioned New Oriental Education & Technology Group Inc. (NYSE: EDU) and discussed its stance on the firm. New Oriental Education & Technology Group Inc. is a Beijing, China-based private educational services provider with a $3.7 billion market capitalization. EDU delivered a -88.21% return since the beginning of the year, while its 12-month returns are down by -87.77%. The stock closed at $2.19 per share on November 19, 2021

Here is what Polen International Growth has to say about New Oriental Education & Technology Group Inc.  in its Q3 2021 investor letter:

“The quarter’s leading detractors were Chinese companies that were impacted by the CCP’s regulatory crackdown and liquidity concerns at property developer Evergrande. New Oriental Education—the largest provider of private educational services in China—moved sharply lower in July after policymakers implemented new rules which effectively turned Chinese tutoring companies into non-profits. Looking at New Oriental Education, we closed our position as soon as government policy became clear and used the proceeds to allocate to existing holdings.

laptop-3087585_1280

Based on our calculations, New Oriental Education & Technology Group Inc. (NYSE: EDU) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. EDU was in 39 hedge fund portfolios at the end of the first half of 2021, compared to 45 funds in the previous quarter. New Oriental Education & Technology Group Inc. (NYSE: EDU) delivered a 20.33% return in the past 3 months.

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