Here’s Why Polen Capital Initiated New Position in Doximity (DOCS)

Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund underperformed its benchmark, the Russell 2500 Growth Index, and returned -28.35% net of fees. Poor performance of consumer discretionary and financials sectors impacted the fund’s performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the second quarter 2022 investor letter, Polen Capital discussed stocks like Doximity, Inc. (NYSE:DOCS). Headquartered in San Francisco, California, Doximity, Inc. (NYSE:DOCS) is a US-based company that provides a cloud platform for medical professionals. On September 28, 2022, Doximity, Inc. (NYSE:DOCS) stock closed at $32.35 per share. One-month return of Doximity, Inc. (NYSE:DOCS) was -1.04% and its shares lost 59.91% of their value over the last 52 weeks. Doximity, Inc. (NYSE:DOCS) has a market capitalization of $6.189 billion.

Here is what Polen Capital specifically said about Doximity, Inc. (NYSE:DOCS) in its Q2 2022 investor letter:

“Doximity, Inc. (NYSE:DOCS) is a productivity and professional network app for doctors that derives its revenues primarily from advertising dollars spent by biopharma companies on its platform. Its unique value proposition lies in its targeted physician list desired by drug companies. Doximity is an attractive alternative or supplement to an industry that has historically focused its ad spend on sales reps. Doximity is uniquely high growth and already a very profitable business with a 33% operating margin. It has attractive software-like economics without having to spend much to acquire users or customers. While the company clearly had some benefits from the pandemic, it is still early in tapping into a growing, $8B market with multiple avenues for growth. The sell-off in recent IPOs has created an attractive risk-reward opportunity to start a position.”

Doximity, Inc. (NYSE:DOCS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Doximity, Inc. (NYSE:DOCS) at the end of the second quarter which was 28 in the previous quarter.

We discussed Doximity, Inc. (NYSE:DOCS) in another article and shared Meridian Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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