Polen Capital on Farfetch (FTCH): “We Can No Longer Count on Management’s Execution”

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 Farfetch Limited (NYSE:FTCH) and explained its insights for the company. Farfetch Limited (NYSE:FTCH) is a London, United Kingdom-based e-commerce company with a $680.2 million market capitalization. Farfetch Limited (NYSE:FTCH) delivered a -63.64% return since the beginning of the year, while its 12-month returns are down by -79.15%. The stock closed at $1.72 per share on November 3, 2023.

Here is what Polen U.S. Small Company Growth has to say about Farfetch Limited (NYSE:FTCH) in its Q3 2023 investor letter:

“Farfetch is a leading digital software and services provider and online marketplace for global luxury brands. While we believe in the company’s long-term potential, profitability has trended in the wrong direction, and a turnaround is taking longer than expected. While Farfetch may still prove successful over time, and the stock is arguably inexpensive, we can no longer count on management’s execution, and we believe there are better risk-adjusted return opportunities in higher quality businesses.”

A model wearing Wolford’s new line of fashion pieces while getting ready before a runway show.

Our calculations show that Farfetch Limited (NYSE:FTCH) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. Farfetch Limited (NYSE:FTCH) was in 42 hedge fund portfolios at the end of the second quarter of 2023, compared to 39 funds in the previous quarter. Farfetch Limited (NYSE:FTCH) delivered a -66.60% 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.