Overview
- Polen Capital’s Q1 2026 letter reports a 17.16% decline for the Polen Focus Growth Strategy versus losses of 9.78% for the Russell 1000 Growth and 4.33% for the S&P 500, citing AI‑related worries and Middle East tensions as key market drivers.
- The portfolio increased exposure to software and semiconductor businesses seen as essential to customers and supported by subscription‑like revenue that tends to hold up through swings in the market.
- Starbucks was the top contributor after early gains under CEO Brian Niccol’s turnaround, with higher comparable sales and better results from revamped stores supporting confidence in the plan.
- The team re‑entered Meta Platforms and started new positions in Lam Research and Rollins to add AI‑linked chip exposure and a steady, non‑cyclical services business with high customer retention.
- Polen added to CoStar despite lower margins tied to Homes.com spending and exited Abbott after the planned Exact Sciences deal and weaker organic growth raised concerns about capital use.