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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 YETI Holdings, Inc. (NYSE:YETI). YETI Holdings, Inc. (NYSE:YETI) distributes products for the outdoor and recreation market. The one-month return of YETI Holdings, Inc. (NYSE:YETI) was 16.05%, and its shares lost 23.87% of their value over the last 52 weeks. On May 13, 2025, YETI Holdings, Inc. (NYSE:YETI) stock closed at $31.67 per share with a market capitalization of $2.595 billion.
Polen U.S. Small Company Growth Strategy stated the following regarding YETI Holdings, Inc. (NYSE:YETI) in its Q1 2025 investor letter:
"By contrast, we eliminated three positions-Fox Factory Holdings, Topgolf Callaway, and YETI Holdings, Inc. (NYSE:YETI)-and trimmed several existing positions. Many of the sells and trims were in the Consumer Discretionary sector, where we believe there is currently more vulnerability to tariff uncertainty and economic dislocation.
A family enjoying a camping trip, with the company's coolers, cargo bags, and other outdoor lifestyle products in the frame.
YETI Holdings, Inc. (NYSE:YETI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held YETI Holdings, Inc. (NYSE:YETI) at the end of the fourth quarter which was 31 in the previous quarter. YETI Holdings, Inc.'s (NYSE:YETI) Q1 2025 sales increased 3% to $351 million. While we acknowledge the potential of YETI Holdings, Inc. (NYSE:YETI) 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.