Polen Capital Management Llc released its “Polen Focus Growth Strategy” Q2 2026 investor letter. A copy of the letter can be downloaded here. Polen Focus Growth returned 6.33% (net of fees) in the second quarter of 2026, significantly underperforming the Russell 1000 Growth Index’s 16.74% gain, as the market rally remained narrowly focused on AI infrastructure and semiconductor stocks. During the quarter, Polen Capital repositioned the portfolio toward companies benefiting from structural growth in AI infrastructure, power demand, and aerospace. Looking ahead, the managers remain confident in the long-term earnings potential of the portfolio but acknowledge that changing market dynamics and the rising opportunity cost of patience require a more nimble approach. They remain focused on competitively advantaged businesses with durable growth prospects, while selectively participating in AI infrastructure, commercial aerospace, and power infrastructure opportunities where supply constraints and long-term demand could support sustained earnings growth. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Polen Focus Growth Strategy highlighted stocks like ATI Inc. (NYSE:ATI). ATI Inc. (NYSE:ATI) produces specialty materials and advanced alloys used in aerospace, defense, energy, and industrial applications. The one-month return of ATI Inc. (NYSE:ATI) was 22.05% while its shares traded between $70.42 and $243.57 over the last 52 weeks. On August 13, 2026, ATI Inc. (NYSE:ATI) stock closed at approximately $230.43 per share, with a market capitalization of about $30.94 billion.
Polen Focus Growth Strategy stated the following regarding ATI Inc. (NYSE:ATI) in its Q2 2026 investor letter:
We initiated a new position in ATI Inc. (NYSE:ATI), a leading producer of specialty materials, including nickel-based alloys used in high-temperature jet engine components. While this may not sound like a traditional Focus Growth investment at first glance, we believe the world has changed meaningfully for ATI. The aerospace supply chain is structurally constrained, and ATI is one of only a very small number of companies capable of producing these materials at the required scale and quality. Our research suggests capacity additions appear limited, while demand from commercial aerospace and gas turbines should remain strong for many years. In our view, ATI is an example of a business that historically may have appeared more cyclical or commodity-like, but where industry structure, scarcity value, and end-market demand have improved significantly.
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ATI Inc. (NYSE:ATI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 69 hedge fund portfolios held ATI Inc. (NYSE:ATI) at the end of the first quarter, which was 62 in the previous quarter. While we acknowledge the risk and potential of ATI Inc. (NYSE:ATI) 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 ATI Inc. (NYSE:ATI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ATI Inc. (NYSE:ATI) and shared ClearBridge Investments’ views 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.
