Why Trade Desk (TTD) Stock is a Compelling Investment Case

Polen Capital Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. During the third quarter of 2020, the Polen U.S. SMID Company Growth Composite Portfolio returned 7.11% gross of fees, while the Russell 2500 Growth Index was up 9.37%. You should check out Polen Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Polen Capital highlighted a few stocks and Trade Desk Inc. (NASDAQ:TTD) is one of them. Trade Desk Inc. (NASDAQ:TTD) is a software company. Year-to-date, Trade Desk Inc. (NASDAQ:TTD) stock gained 185.6% and on November 11th it had a closing price of $742.04. Here is what Polen Capital said:

“The Trade Desk was a top contributor in the quarter. The company operates the largest programmatic advertising platform globally that enables data-driven digital advertising for ad agencies and brands. The massive shift to digital media consumption combined with the increasingly fragmented nature of consumers’ media behavior make it harder for companies to reach the right consumers in the right places. Programmatic advertising/ad buying helps companies do this more successfully. Digital media is bought in an automated fashion and machinedriven. The advertiser selects the impressions they want to buy, not the publisher. This method helps companies reach more consumers and engage with them across different touchpoints with ads that are more targeted and relevant. Additionally, companies receive more analytics to help them make decisions and measure results.

The Trade Desk has been able to scale its business, and management has been able to balance both growth and profitability. We believe that COVID-19 is a catalyst for advertisers to move in The Trade Desk’s direction. Given the increasing importance of data-driven advertising, especially in the current environment, we believe the company’s competitive position has been enhanced as a result of the pandemic.”


In Q2 2020, the number of bullish hedge fund positions on Trade Desk Inc. (NASDAQ:TTD) stock decreased by about 20% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Trade Desk’s growth potential. Our calculations showed that Trade Desk Inc. (NASDAQ:TTD) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.