Polen Capital, an investment management firm, released its “U.S. Small Company Growth Fund” third 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 XPEL, Inc. (NASDAQ:XPEL) and explained its insights for the company. XPEL, Inc. (NASDAQ:XPEL) is a San Antonio, Texas-based automotive company with a $1.3 billion market capitalization. XPEL, Inc. (NASDAQ:XPEL) delivered a -16.48% return since the beginning of the year, while its 12-month returns are down by -21.93%. The stock closed at $50.16 per share on November 3, 2023.
Here is what Polen U.S. Small Company Growth has to say about XPEL, Inc. (NASDAQ:XPEL) in its Q3 2023 investor letter:
“XPEL is a leader in the automotive paint protection film (“PPF”) market. PPF is popular for high-end vehicles and gaining broader traction due to the solid value proposition and XPEL, which drive market growth. XPEL is a notable name brand that has become synonymous with paint protection. It has the most extensive distribution network and exceptional software to aid installation centers. We believe it’s still early for paint protection as the product gains traction with dealers, OEMs (original equipment manufacturers), and a broader set of consumers. While the product may seem simple, the infrastructure cannot be easily replicated. Regarding valuecreating reinvestment, XPEL is planting the seeds for many years of growth with early investments in Europe and opening up PPF to new markets such as architectural and Marine. The financial model is also robust, with 20% operating margins, compelling free cash flow conversion, a solid balance sheet, and high returns on capital.”
A technician working on an automotive electronic, showcasing the company’s dedication to innovation.
Our calculations show that XPEL, Inc. (NASDAQ:XPEL) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. XPEL, Inc. (NASDAQ:XPEL) was in 13 hedge fund portfolios at the end of the second quarter of 2023, compared to 15 funds in the previous quarter. XPEL, Inc. (NASDAQ:XPEL) delivered a -38.62% 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.
