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 Goosehead Insurance, Inc (NASDAQ:GSHD) and explained its insights for the company. Founded in 2003, Goosehead Insurance, Inc (NASDAQ:GSHD) is a Westlake, Texas-based insurance company with a $1.8 billion market capitalization. Goosehead Insurance, Inc (NASDAQ:GSHD) delivered a -61.05% return since the beginning of the year, while its 12-month returns are down by -45.64%. The stock closed at $50.66 per share on June 03, 2022.
Here is what Polen U.S. Small Company Growth Fund has to say about Goosehead Insurance, Inc (NASDAQ:GSHD) in its Q1 2022 investor letter:
“Goosehead Insurance remains fundamentally strong in our view, and company management reiterated its confidence in investing in the business to drive greater market-share penetration and long-term profit. During the quarter, revenue growth remained very robust at over 35% and franchises continued to gain in productivity. However, we suspect there may have been some concern around EBITDA margins not being as high as expected for the coming year, with marketing and technology investments running higher than expected. This does not change how we are thinking about the business. If we zoom out, Goosehead’s business model remains very robust according to our research and should benefit significantly from scale. In our opinion, the biggest driver of the stock’s pullback this past quarter was the valuation correction we saw in the highest growth segments of the Index.”
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Our calculations show that Goosehead Insurance, Inc (NASDAQ:GSHD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Goosehead Insurance, Inc (NASDAQ:GSHD) was in 17 hedge fund portfolios at the end of the first quarter of 2022, compared to 17 funds in the previous quarter. Goosehead Insurance, Inc (NASDAQ:GSHD) delivered a -21.09% return in the past 3 months.
In March 2022, we also shared another hedge fund’s views on Goosehead Insurance, Inc (NASDAQ:GSHD) 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.
