Is Qualys (QLYS) a Worthy Investment Pick?

Polen Capital, an investment management firm, published its “Polen U.S. Small Company Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Over the first quarter, the Polen U.S. Small Company Growth Composite Portfolio (the “Portfolio”) returned -21.98% gross and -22.18% net of fees, respectively, underperforming the Russell 2000 Growth Index’s (the “Index’) -12.63% 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 U.S. Small Company Growth Fund mentioned Qualys, Inc. (NASDAQ:QLYS) and explained its insights for the company. Founded in 1999, Qualys, Inc. (NASDAQ:QLYS) is a Foster City, California-based software company with a $5.1 billion market capitalization. Qualys, Inc. (NASDAQ:QLYS) delivered a -3.59% return since the beginning of the year, while its 12-month returns are up by 32.25%. The stock closed at $132.30 per share on June 03, 2022.

Here is what Polen U.S. Small Company Growth Fund has to say about Qualys, Inc. (NASDAQ:QLYS) in its Q1 2022 investor letter:

“Information technology security company Qualys experienced a slight acceleration in revenue over the quarter in response to heightened cybersecurity concerns. With a compelling free cash flow yield coupled with improved results, we believe the IRR is very compelling. We have also been pleased to see the company’s new management team investing more aggressively in the business, alongside what we believe will be growing demand for cybersecurity software. We believe there is more buyer urgency for offerings like Qualys’ as a result of Russia’s war with Ukraine and recent high- profile attacks. This should drive increased momentum in the business which Qualys’ is increasingly well-positioned for given recent investments in sales and marketing.”

Our calculations show that Qualys, Inc. (NASDAQ:QLYS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Qualys, Inc. (NASDAQ:QLYS) was in 23 hedge fund portfolios at the end of the first quarter of 2022. Qualys, Inc. (NASDAQ:QLYS) delivered a 3.15% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on Qualys, Inc. (NASDAQ:QLYS) in another article. 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.