Polen Capital: SAP SE (SAP) Remains a High Conviction Investment for the Portfolio

Polen Capital, an investment management firm, published its “Polen International Growth” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of -1.14% was delivered by the fund for the Q1 of 2021, trailing its MSCI All Country World benchmark that delivered a 3.49% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Polen International Growth Fund, in its Q1 2021 investor letter, mentioned SAP SE (NYSE: SAP), and shared their insights on the company. SAP SE is a Walldorf, Germany-based software company that currently has a $164 billion market capitalization. Since the beginning of the year, SAP delivered a 6.47% return, extending its 12-month gains to 22.62%. As of May 14, 2021, the stock closed at $138.82 per share.

Here is what Polen International Growth Fund has to say about SAP SE in its Q1 2021 investor letter:

 “SAP remains a high conviction investment for the Portfolio. Late last year, SAP announced a business transition that will likely stymie earnings growth for the next two calendar years. Although we believe in SAP and its potential to affect this transition, we used our position as a source of funds to increase our weighting in New Oriental Education when New Oriental shares sold off. This trade was a shifting of capital from one position to another that became more compelling after fundamentally unwarranted selling, in our view.”


Our calculations show that SAP SE (NYSE: SAP) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, SAP SE was in 14 hedge fund portfolios, compared to 16 funds in the third quarter. SE delivered a 5.22% 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.