Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, optimism fueled by the Trump election shifted to fear and uncertainty due to apprehension about cost-cutting measures and emerging trade policies. In the first quarter, the fund delivered -10.53% gross, and -10.83% net of fees, compared to a -11.12% return for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.
In its first-quarter 2025 investor letter, Polen U.S. Small Company Growth Strategy highlighted stocks such as Topgolf Callaway Brands Corp. (NYSE:MODG). Headquartered in Carlsbad, California, Topgolf Callaway Brands Corp. (NYSE:MODG) is a tech-enabled golf and lifestyle company that manufactures and distributes golf equipment and accessories. The one-month return of Topgolf Callaway Brands Corp. (NYSE:MODG) was 1.95%, and its shares lost 59.70% of their value over the last 52 weeks. On May 13, 2025, Topgolf Callaway Brands Corp. (NYSE:MODG) stock closed at $6.55 per share with a market capitalization of $1.153 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Topgolf Callaway Brands Corp. (NYSE:MODG) in its Q1 2025 investor letter:
“We also exited Topgolf Callaway Brands Corp. (NYSE:MODG) as the investment case became less compelling. While Topgolf remains an exciting growth driver, several factors have reduced our conviction. Pressure on the consumer, combined with execution risks tied to Topgolf’s scaling and profitability trajectory, as well as rising competitive intensity in both golf equipment and entertainment, led us to conclude that our capital would be better deployed elsewhere.”
A group of happy golfers basking in the warm sun on a golf course.
Topgolf Callaway Brands Corp. (NYSE:MODG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Topgolf Callaway Brands Corp. (NYSE:MODG) at the end of the fourth quarter which was 22 in the previous quarter. Topgolf Callaway Brands Corp. (NYSE:MODG) reported consolidated revenues of $1.09 billion in Q1 2025, down 5% year-over-year. While we acknowledge the potential of Topgolf Callaway Brands Corp. (NYSE:MODG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we covered Topgolf Callaway Brands Corp. (NYSE:MODG) and shared the list of best golf stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
