Soumya Eswaran
3 min read
In This Article:
Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, optimism fueled by the Trump election shifted to fear and uncertainty due to apprehension about cost-cutting measures and emerging trade policies. In the first quarter, the fund delivered -10.53% gross, and -10.83% net of fees, compared to a -11.12% return for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.
In its first-quarter 2025 investor letter, Polen U.S. Small Company Growth Strategy highlighted stocks such as Revolve Group, Inc. (NYSE:RVLV). Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer for millennial and Generation Z consumers. The one-month return of Revolve Group, Inc. (NYSE:RVLV) was 1.73%, and its shares lost 11.77% of their value over the last 52 weeks. On May 13, 2025, Revolve Group, Inc. (NYSE:RVLV) stock closed at $20.32 per share with a market capitalization of $1.45 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding Revolve Group, Inc. (NYSE:RVLV) in its Q1 2025 investor letter:
"The most significant quarterly detractors from performance, both relative and absolute, were Globant, e.l.f. Beauty, and Revolve Group.
A modern fashion boutique lit up with neon display signs.
Revolve Group, Inc. (NYSE:RVLV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Revolve Group, Inc. (NYSE:RVLV) at the end of the fourth quarter compared to 18 in the third quarter. In the first quarter, Revolve Group, Inc. (NYSE:RVLV) reported net sales of $297 million, marking a 10% increase from Q1 2024. While we acknowledge the potential of Revolve Group, Inc. (NYSE:RVLV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
