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 Rollins, Inc. (NYSE:ROL) as a newly added position. Rollins, Inc. (NYSE:ROL) is a leading pest control company that provides pest and wildlife control services and protection to residential and commercial customers. On April 28, 2026, Rollins, Inc. (NYSE:ROL) closed at $55.74 per share. One-month return of Rollins, Inc. (NYSE:ROL) was 4.21%, and its shares lost 2.43% over the past 52 weeks. Rollins, Inc. (NYSE:ROL) has a market capitalization of $26.84 billion.
Polen Focus Growth Strategy stated the following regarding Rollins, Inc. (NYSE:ROL) in its Q1 2026 investor letter:
“We initiated a new position in Rollins, Inc. (NYSE:ROL), the leading U.S. pest control provider, which has delivered strong long-term compounding through consistent organic growth and disciplined acquisitions. The business benefits from non-cyclical demand, high customer retention across nearly 3 million clients, and significant growth opportunities in a still-fragmented industry. Rollins’ scale, strong brand (Orkin), and solid balance sheet underpin durable competitive advantages. With a new, non-family CEO identifying opportunities to enhance cross-selling, pricing, and cost efficiencies, we see potential for future growth to exceed the company’s already impressive historical track record.”
Rollins, Inc. (NYSE:ROL) 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 Rollins, Inc. (NYSE:ROL) at the end of the fourth quarter, up from 48 in the previous quarter. In the first quarter of 2026, Rollins, Inc. (NYSE:ROL) delivered revenue growth of 10.2% year-over-year and an organic growth of 6.6%. While we acknowledge the risk and potential of Rollins, Inc. (NYSE:ROL) 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 Rollins, Inc. (NYSE:ROL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Rollins, Inc. (NYSE:ROL) and shared a bullish thesis on the company. 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.
