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 E.l.f. Beauty, Inc. (NYSE:ELF). E.l.f. Beauty, Inc. (NYSE:ELF) is a beauty company that offers cosmetic and skin care products. The one-month return of E.l.f. Beauty, Inc. (NYSE:ELF) was 59.52%, and its shares lost 52.66% of their value over the last 52 weeks. On May 13, 2025, E.l.f. Beauty, Inc. (NYSE:ELF) stock closed at $78.21 per share with a market capitalization of $4.494 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding E.l.f. Beauty, Inc. (NYSE:ELF) in its Q1 2025 investor letter:
"The most significant quarterly detractors from performance, both relative and absolute, were Globant, E.l.f. Beauty, Inc. (NYSE:ELF), and Revolve Group.
A close up of the lip and eye products from the company on a model in a fashion and beauty shoot.
E.l.f. Beauty, Inc. (NYSE:ELF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held E.l.f. Beauty, Inc. (NYSE:ELF) at the end of the fourth quarter which was 40 in the previous quarter. While we acknowledge the potential of E.l.f. Beauty, Inc. (NYSE:ELF) 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.
In another article, we covered E.l.f. Beauty, Inc. (NYSE:ELF) and shared the list of stocks that should double in 3 years. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
