Here’s Why Polen Capital Remains Positive on the Long-Term Prospects of Paycom (PAYC)

Polen Capital, an investment management firm, published its “Polen Global SMID Company Growth” third quarter 2021 investor letter – a copy of which can be downloaded here. Over the fourth quarter of 2021, the Polen Global SMID Portfolio (the “Portfolio”) returned -1.28% gross and -1.76% net of fees, versus the 3.29% return for the MSCI ACWI SMID Capitalization Index (the “Index”).  Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Polen Global SMID Company Growth Fund, in its Q4 2021 investor letter, mentioned Paycom Software, Inc. (NYSE:PAYC) and discussed its stance on the firm. Founded in 1998, Paycom Software, Inc. (NYSE:PAYC) is an Oklahoma City, Oklahoma-based online payroll and human resource technology provider with an $18.2 billion market capitalization, and is currently spearheaded by its CEO, Chad Richison. Paycom Software, Inc. (NYSE:PAYC) delivered a -26.97% return since the beginning of the year, while its 12-month returns are down by -23.01%. The stock closed at $303.22 per share on March 11, 2022.

Here is what Polen Global SMID Company Growth Fund has to say about Paycom Software, Inc. (NYSE:PAYC) in its Q4 2021 investor letter:

“Our most significant detractors from performance over the fourth quarter includes Paycom. Paycom underperformed, we believe, due to investor profit-taking following several months of solid performance. We remain positive on the long-term prospects of what we view as a great company.

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Our calculations show that Paycom Software, Inc. (NYSE:PAYC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Paycom Software, Inc. (NYSE:PAYC) was in 46 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 40 funds in the previous quarter. Paycom Software, Inc. (NYSE:PAYC) delivered a -27.02% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on Paycom Software, Inc. (NYSE:PAYC) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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