Here’s Why Polen Capital Sold its Altair Engineering (ALTR) Stake

Polen Capital, an investment management firm, released its “U.S. Small Company Growth Fundthird quarter 2023 investor letter, a copy of which can be downloaded here. In the third quarter, the U.S. Small Company Growth Composite Portfolio, referred to as the “Portfolio,” posted returns of -3.66% gross and -3.97% net of fees. This performance is in contrast to the -7.32% return of the Russell 2000 Growth Index, known as the “Index.” Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.

In its Q3 2023 investor letter, Polen U.S. Small Company Growth mentioned Altair Engineering Inc. (NASDAQ:ALTR) and explained its insights for the company. Altair Engineering Inc. (NASDAQ:ALTR) is a Troy, Michigan-based multinational information technology company with a $5.3billion market capitalization. Altair Engineering Inc. (NASDAQ:ALTR) delivered a 44.58% return since the beginning of the year, while its 12-month returns are up by 44.52%. The stock closed at $65.74 per share on November 3, 2023.

Here is what Polen U.S. Small Company Growth has to say about Altair Engineering Inc. (NASDAQ:ALTR) in its Q3 2023 investor letter:

Altair Engineering is a simulation software company and a solid flywheel company. We decided to completely exit the position after trimming it last quarter due to valuation. The stock was up 66% YTD at the time of sale in mid-July, and we decided to redeploy capital towards high-quality flywheel companies with more attractive expected IRRs in the form of new ideas and additions to existing holdings.”

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Our calculations show that Altair Engineering Inc. (NASDAQ:ALTR) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. Altair Engineering Inc. (NASDAQ:ALTR) was in 16 hedge fund portfolios at the end of the second quarter of 2023, compared to 21 funds in the previous quarter. Altair Engineering Inc. (NASDAQ:ALTR) delivered a 3.04% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.

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