Pollen Capital, an investment management firm, has released its “Pollen Global Growth Strategy” Investor Letter for Q2 2024. A copy of the letter can be downloaded here. AI remained a major topic in the market during the second quarter. The strategy returned -1.63% gross (-1.91% net) compared to the MSCI ACW Index’s return of 2.87%. Additionally, check out the fund’s top 5 holdings to learn about our best picks for 2024.
Polen Global Growth Strategy covered stocks such as Paycom Software, Inc. (NYSE:PAYC) in its Q2 2024 investor letter. Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management solutions provider. Paycom Software, Inc. (NYSE:PAYC) saw a one-month return of 14.67% and its stock price fell 55.48% over the past 52 weeks. On July 26, 2024, Paycom Software, Inc. (NYSE:PAYC) stock closed at $164.03 per share, with a market capitalization of $9.532 billion.
Polen Global Growth Strategy said the following about Paycom Software, Inc. (NYSE:PAYC) in its Q2 2024 investor letter:
“Finally, Paycom Software, Inc. (NYSE:PAYC), a new addition we initiated with a smaller position size, was another relative negative during the period. Paycom is a leading provider of cloud-native payroll and human capital management (HCM) software. Recent go-to-market failures with the company’s new BETI product and some macro weakness have slowed near-term growth. However, we believe its long-term prospects remain healthy as an attractive industry leader offering mission-critical software with high recurring revenue, over 90% retention, and strong returns on capital. The stock’s performance was substantially compressed at the P/E multiple.”
Close-up of two software engineers typing on laptops in a bright, modern office.
Paycom Software, Inc. (NYSE:PAYC) is not on our list of the 31 most popular stocks among hedge funds. According to our database, 35 hedge fund portfolios held Paycom Software, Inc. (NYSE:PAYC) at the end of the first quarter, up from 40 in the previous quarter. Paycom Software, Inc. (NYSE:PAYC) had revenues of $500 million in the first quarter, up 11% compared to the first quarter of 2023. While we see the potential of Paycom Software, Inc. (NYSE:PAYC) as an investment, we have the conviction that AI stocks are more likely to deliver higher returns and do so in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA but trade at less than 5 times earnings, check out our report on the cheapest AI stocks.
The story continues
In another article, we covered Paycom Software, Inc. (NYSE:PAYC) and shared Oakmark Select Fund’s view on the company. In Q1 2024, Pollen Focus Growth Strategy established a new position in Paycom Software, Inc. (NYSE:PAYC). Additionally, to learn more about investor letters from hedge funds and other major investors, please see our Hedge Fund Investor Letters Q2 2024 page.
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Disclosures: None. This article was originally published on Insider Monkey.
