Polen Capital, an investment management firm, published its “Polen Global Growth” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly gross return of 7.08% was delivered by the fund for the fourth quarter of 2021, versus the MSCI All-Country World Index (the “Index”)’s return of 6.67% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Polen Global Growth, in its Q4 2021 investor letter, mentioned Autodesk, Inc. (NASDAQ: ADSK) and discussed its stance on the firm. Autodesk, Inc. is a San Rafael, California-based software company with a $51.4 billion market capitalization. ADSK delivered a -16.87% return since the beginning of the year, while its 12-month returns are down by -22.74%. The stock closed at $233.74 per share on February 16, 2022.
Here is what Polen Global Growth has to say about Autodesk, Inc. in its Q4 2021 investor letter:
“We added to Autodesk on share price weakness. Near-term concerns have made the valuations of the company quite attractive in our view. Autodesk has consistently reported solid results, but management recently provided lower than expected guidance, noting supply chain issues, inflation squeezing its customer margins, global labor shortages, and complications from rolling and unpredictable COVID lockdowns globally. In aggregate, these issues mean that fewer client projects have been completed, despite high endmarket demand. Ultimately, many of these productivity pressures will likely drive the need to digitize further.
To be clear, much of the pressure on Autodesk’s share price recently was due to expectations, not a decline in the fundamentals of the business. The company continues to grow revenues at greater than mid-teens rates while simultaneously enjoying record renewal rates. While each of the noted factors present real challenges in the near term, we think the lower share price provides long-term investors an opportunity. Given the secular trend towards digitization and the ever-increasing mission-critical nature of Autodesk’s products, we are confident in the long-term investment case. “
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Our calculations show that Autodesk, Inc. (NASDAQ: ADSK) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. ADSK was in 54 hedge fund portfolios at the end of the third quarter of 2021, compared to 64 funds in the previous quarter. Autodesk, Inc. (NASDAQ: ADSK) delivered a -29.29% return in the past 3 months.
In October 2021, we also shared another hedge fund’s views on ADSK in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
