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 Lam Research Corporation (NASDAQ:LRCX). Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment manufacturer that provides wafer fabrication equipment and services used in the production of advanced chips. The one-month return of Lam Research Corporation (NASDAQ:LRCX) was 7.57% while its shares traded between $94.11 and $438.50 over the last 52 weeks. On August 13, 2026, Lam Research Corporation (NASDAQ:LRCX) stock closed at approximately $326.11 per share, with a market capitalization of about $421.71 billion.
Polen Focus Growth Strategy stated the following regarding Lam Research Corporation (NASDAQ:LRCX) in its Q2 2026 investor letter:
Lam Research (NASDAQ:LRCX) was the Portfolio’s top-performing holding during the quarter as investors rewarded companies directly enabling the AI infrastructure buildout. Lam is a leading supplier of wafer fabrication equipment, with particular strength in etch and deposition—critical steps in producing increasingly complex semiconductors. The company reported record March-quarter revenue and earnings per share, supported by AI-driven demand. We believe Lam is well positioned to benefit from investment cycles in leading-edge logic, memory, high-bandwidth memory, advanced packaging, and data center-related capacity. While the industry remains cyclical, Lam’s technology leadership and exposure to key AI supply-chain bottlenecks made it a clear beneficiary of the quarter’s market environment.
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Lam Research Corporation (NASDAQ:LRCX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 123 hedge fund portfolios held Lam Research Corporation (NASDAQ:LRCX) at the end of the first quarter, which was 104 in the previous quarter. While we acknowledge the risk and potential of Lam Research Corporation (NASDAQ:LRCX) 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 Lam Research Corporation (NASDAQ:LRCX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Lam Research Corporation (NASDAQ:LRCX) and shared Jim Cramer’s 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.
