Here’s Why Polen U.S SMID Company Growth Strategy Exited its Position in Booz Allen Hamilton Holding Corporation (BAH)

Polen Capital, an investment management company, released its “Polen US SMID Company Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The initial market optimism after the Presidential election gave way to fear and uncertainty in the first quarter of 2025. Against this backdrop, the fund returned -12.38% gross, and -12.65% net of fees compared to the Russell 2500 Growth Index return of -10.80%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Polen US SMID Company Growth Strategy highlighted stocks such as Booz Allen Hamilton Holding Corporation (NYSE:BAH). Booz Allen Hamilton Holding Corporation (NYSE:BAH) offers management and technology consulting services to governments, corporations, and not-for-profit organizations. The one-month return of Booz Allen Hamilton Holding Corporation (NYSE:BAH) was -18.09%, and its shares lost 32.74% of their value over the last 52 weeks.  On June 6, 2025, Booz Allen Hamilton Holding Corporation (NYSE:BAH) stock closed at $103.21 per share, with a market capitalization of $12.659 billion.

Polen US SMID Company Growth Strategy stated the following regarding Booz Allen Hamilton Holding Corporation (NYSE:BAH) in its Q1 2025 investor letter:

“We eliminated Booz Allen Hamilton in the first quarter. For Booz Allen Hamilton Holding Corporation (NYSE:BAH), the risk of government cost-cutting and the company’s broad ties to government spending pointed to a violation in our Flywheel, specifically the repeatability of revenue in a significantly worse-than-expected cost-cutting environment.”

Why Booz Allen Hamilton Holding Corporation (BAH) Crashed On Friday

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Booz Allen Hamilton Holding Corporation (NYSE:BAH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Booz Allen Hamilton Holding Corporation (NYSE:BAH) at the end of the first quarter, which was 48 in the previous quarter. While we acknowledge the potential of Booz Allen Hamilton Holding Corporation (NYSE:BAH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Booz Allen Hamilton Holding Corporation (NYSE:BAH) and shared Andvari Associates’ views on the company. In addition, please check out our hedge fund investor letters Q1 2025 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.