Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The first quarter of 2026 was highly volatile for US equities, driven by AI disruption concerns and the US-Israel conflict in Iran and the Middle East. In this backdrop, the Polen Focus Growth Strategy declined 17.16% in the quarter, compared to a -9.78% return for the Russell 1000 Growth and -4.33% return for the S&P 500. The Strategy focuses on mission-critical businesses with recurring revenue and competitive advantages and capitalizes on the volatility to increase investments in software and semiconductor companies. The Strategy remains confident in the long-term potential of the Portfolio, emphasizing businesses with strong economic moats, robust balance sheets, and multi-year earnings growth. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Polen Focus Growth Strategy highlighted Starbucks Corporation (NASDAQ:SBUX) as a leading contributor to the Strategy’s performance. Based in Seattle, Washington, Starbucks Corporation (NASDAQ:SBUX) is a leading coffee company and coffeehouse chain. On April 28, 2026, Starbucks Corporation (NASDAQ:SBUX) closed at $97.28 per share. One-month return of Starbucks Corporation (NASDAQ:SBUX) was 7.57%, and its shares gained 21.52% over the past 52 weeks. Starbucks Corporation (NASDAQ:SBUX) has a market capitalization of $110.83 billion.
Polen Focus Growth Strategy stated the following regarding Starbucks Corporation (NASDAQ:SBUX) in its Q1 2026 investor letter:
“Starbucks Corporation (NASDAQ:SBUX) was the top performing absolute and relative contributor in Q1 amid positive signs that CEO Brian Nicol’s multi year turnaround strategy is beginning to bear fruit. Comparable store sales have ticked up, and the company is seeing improved results from stores that have undergone a revamp as part of the overall turnaround strategy. Our confidence in the new management team and their ability to execute a multi-pronged, sensible and achievable plan was a primary reason for reacquiring the company last year, in addition to the non-cyclical characteristics that the company possess which were on display amidst the volatility so far this year.”
Starbucks Corporation (NASDAQ:SBUX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 57 hedge fund portfolios held Starbucks Corporation (NASDAQ:SBUX) at the end of the fourth quarter, up from 56 in the previous quarter. While we acknowledge the risk and potential of Starbucks Corporation (NASDAQ:SBUX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Starbucks Corporation (NASDAQ:SBUX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Starbucks Corporation (NASDAQ:SBUX) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q1 2026 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.
