Polen Capital Management, a value-driven, concentrated, long-term investment management firm, published its ‘Polen Global Growth’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 7.70% was recorded by the fund for the Q4 of 2020, below its MSCI All-Country World benchmark that delivered a 14.69% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Polen Global Growth, in their Q4 2020 Investor Letter, said that they already sold their positions in Oracle Corporation (NYSE: ORCL) because of insufficient growth of the company. Oracle Corporation is a database software, and technology provider company that currently has a $187.2 billion market cap. For the past 3 months, ORCL delivered an 11.97% return and settled at $63.60 per share at the closing of February 5th.
Here is what Polen Global Growth has to say about Oracle Corporation in their investor letter:
“During the quarter, we sold Oracle. We have been extremely patient with Oracle’s transition to the cloud. But, after years of little to no revenue growth and insufficient evidence, in our view, that the transition is working, we have decided to liquidate our position in the company. In 2013, Oracle began a slow and methodical transition of its on-premise relational database offering to the cloud. This evolution eventually culminated in the Autonomous Database, or “ADB.” In theory, this product should be extremely successful, as its value proposition is strong. ADB effectively cuts humans out of managing, maintaining, and patching databases, and Oracle guarantees 99.995% reliability. Yet, after over two years of existence, ADB growth and adoption is not where we hoped it would be. The database business represents over 50% of Oracle’s revenue. Despite strong growth in Oracle’s Cloud ERP businesses, ADB’s success is material to our long-term investment case for Oracle. We will continue to follow the company closely but watch from the sidelines until there is more widespread adoption of this cloud offering.”
Last November 2020, we published an article telling that Oracle Corporation (NYSE: ORCL) was in 49 hedge fund portfolios. Its all time high statistics is 74. ORCL delivered a 16.23% return in the past 12 months.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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