Polen Capital, an investment management firm, published its “Polen U.S. Small Company Growth” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 0.99% was delivered by the fund for the first quarter of 2021, trailing its Russell 2000 Growth benchmark that delivered a 4.87% gain for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Polen U.S. Small Company Growth Fund, in its Q1 2021 investor letter, mentioned Duck Creek Technologies, Inc. (NASDAQ: DCT), and shared their insights on the company. Duck Creek Technologies, Inc. is a Boston, Massachusetts-based software company that currently has a $5.08 billion market capitalization. Since the beginning of the year, DCT delivered a -10.79% return, while its 1-month return are down by -12.16%. As of May 24, 2021, the stock closed at $38.63 per share.
Here is what Polen U.S. Small Company Growth Fund has to say about Duck Creek Technologies, Inc. in its Q1 2021 investor letter:
“Duck Creek Technologies is a SaaS provider of core systems software to the Property & Casualty insurance industry. Core systems software, including policy, billings, and claims power the carriers’ most critical operations. These operations include the fundamental insurance product structure, the ability to generate underwriting data, and managing the entire claims lifecycle. In our view, as an innovative SaaS provider, Duck Creek has few rea competitors. The mission-critical nature of this service can drive high customer retention and the ability to sell more to existing customers by constantly adding more value-added services over time.
We believe we are in the early stages of a multi-decade adoption cycle of Duck Creek’s solutions in an enormous global market.
Customer churn is effectively non-existent; and world-class unit economics could lead to a long runway for revenue and earnings growth. We think the company is led by a high quality founder who, early on, positioned Duck Creek to be a leader in the insurance industry’s migration from legacy, on-premise systems to the cloud. The company is well-capitalized, has no debt, and is primed for growth in our opinion.”
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Our calculations show that Duck Creek Technologies, Inc. (NASDAQ: DCT) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Duck Creek Technologies, Inc. was in 19 hedge fund portfolios, compared to 22 funds in the fourth quarter of 2020. DCT delivered a -26.11% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
