Polen Capital, an investment management firm, published its “Polen US SMID Company Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Over the first quarter, the Polen U.S. SMID Company Growth Composite Portfolio (the “Portfolio”) returned -23.81% gross and -24.02% net of fees, respectively, underperforming the Russell 2500 Growth Index’s -12.30% return. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Polen US SMID Company Growth Fund mentioned Five Below, Inc. (NASDAQ:FIVE) and explained its insights for the company. Founded in 2002, Five Below, Inc. (NASDAQ:FIVE) is a Philadelphia, Pennsylvania-based discount store company with a $7.1 billion market capitalization. Five Below, Inc. (NASDAQ:FIVE) delivered a -37.06% return since the beginning of the year, while its 12-month returns are down by -31.57%. The stock closed at $130.21 per share on June 02, 2022.
Here is what Polen US SMID Company Growth Fund has to say about Five Below, Inc. (NASDAQ:FIVE) in its Q1 2022 investor letter:
“During the quarter, we added a position in Five Below, a leading high-growth value retailer focused on high-quality, trend-right products that are targeted to teens. This is also a previous holding. The company offers a fun treasure-hunt shopping experience and, with most items priced between $1 and $5, Five Below attracts a wide range of customers to its 1,200 stores across 40 states. We had previously owned the company during the pandemic but sold it in response to concern about the business’s reliance on physical storefronts and foot traffic. With the economy reopening and the stock pulling back over the last several months, we believed Five Below was again an attractive investment. The company has potential to grow its store base, compelling store economics and a value-orientation in a potentially difficult economy. We’re excited about the company’s plans to triple its store base by 2030, as well as to double its top and bottom line by 2025. Based on expectations of 15% square footage growth annually, modest store comps, and limited margin improvement over the next eight years, we believe there is significant upside potential for the company.”
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Our calculations show that Five Below, Inc. (NASDAQ:FIVE) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Five Below, Inc. (NASDAQ:FIVE) was in # hedge fund portfolios at the end of the first quarter of 2022, compared to # funds in the previous quarter. Five Below, Inc. (NASDAQ:FIVE) delivered a -13.00% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
