Polen Capital: “We are Encouraged by ETSY’s Performance”

Polen Capital, an investment management firm, published its “Polen US SMID Company Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Over the first quarter, the Polen U.S. SMID Company Growth Composite Portfolio (the “Portfolio”) returned -23.81% gross and -24.02% net of fees, respectively, underperforming the Russell 2500 Growth Index’s -12.30% 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 US SMID Company Growth Fund mentioned Etsy, Inc. (NASDAQ:ETSY) and explained its insights for the company. Founded in 2005, Etsy, Inc. (NASDAQ:ETSY) is a Brooklyn, New York-based e-commerce company with a $10.4 billion market capitalization. Etsy, Inc. (NASDAQ:ETSY) delivered a -62.47% return since the beginning of the year, while its 12-month returns are down by -49.95%. The stock closed at $87.29 per share on June 02, 2022.

Here is what Polen US SMID Company Growth Fund has to say about Etsy, Inc. (NASDAQ:ETSY) in its Q1 2022 investor letter:

“E-commerce company Etsy has experienced challenges from the return to “normal” after the pandemic. Management made a point of lowering expectations for 2022, sounding more cautious in areas like home furnishings. We appreciate that there will be reopening headwinds for businesses like Etsy that create noise in the numbers, but this does not change our view on the long-term potential for the business. We are encouraged by Etsy’s performance retaining new customers added during the pandemic and driving repeat purchases within this customer segment. This is, in our opinion, a healthy sign that these customers have staying power.”

Our calculations show that Etsy, Inc. (NASDAQ:ETSY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Etsy, Inc. (NASDAQ:ETSY) was in 43 hedge fund portfolios at the end of the first quarter of 2022, compared to 47 funds in the previous quarter. Etsy, Inc. (NASDAQ:ETSY) delivered a -45.79% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Etsy, Inc. (NASDAQ:ETSY) 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.