Polen Capital Management Llc released its "Polen Focus Growth Strategy" Q2 2026 investor letter. A copy of the letter can be downloaded here. Polen Focus Growth returned 6.33% (net of fees) in the second quarter of 2026, significantly underperforming the Russell 1000 Growth Index's 16.74% gain, as the market rally remained narrowly focused on AI infrastructure and semiconductor stocks.
During the quarter, Polen Capital repositioned the portfolio toward companies benefiting from structural growth in AI infrastructure, power demand, and aerospace. Looking ahead, the managers remain confident in the long-term earnings potential of the portfolio but acknowledge that changing market dynamics and the rising opportunity cost of patience require a more nimble approach. They remain focused on competitively advantaged businesses with durable growth prospects, while selectively participating in AI infrastructure, commercial aerospace, and power infrastructure opportunities where supply constraints and long-term demand could support sustained earnings growth.
In addition, please check the Fund's top five holdings to know its best picks in 2026. In its second-quarter 2026 investor letter, Polen Focus Growth Strategy highlighted stocks like Howmet Aerospace Inc. (NYSE:HWM). Howmet Aerospace Inc. (NYSE:HWM) manufactures advanced engineered components used in aerospace, transportation, and industrial applications.
The one-month return of Howmet Aerospace Inc. (NYSE:HWM) was 3.81% while its shares traded between $169.45 and $310.00 over the last 52 weeks. On August 13, 2026, Howmet Aerospace Inc. (NYSE:HWM) stock closed at approximately $281.63 per share, with a market capitalization of about $112.79 billion. Polen Focus Growth Strategy stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q2 2026 investor letter: We initiated a new position in Howmet Aerospace (NYSE:HWM), a critical supplier of highly engineered components for commercial aerospace engines.
Howmet occupies an advantaged position in parts of the engine supply chain where there are very few companies with the technical capabilities, scale, and customer approvals required to compete. In certain mission-critical engine components, Howmet is one of only a small number of scaled suppliers, and in some cases effectively serves as the key provider capable of meeting industry demand. Importantly, Howmet can potentially benefits from both new aircraft production and aftermarket demand.
Whether Boeing and Airbus improve production rates or airlines continue extending the life of existing aircraft, we believe Howmet should benefit from the need for more engine components over time. Howmet Aerospace Inc. (NYSE:HWM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 75 hedge fund portfolios held Howmet Aerospace Inc. (NYSE:HWM) at the end of the first quarter, which was 71 in the previous quarter.
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