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 GE Vernova Inc. (NYSE:GEV). GE Vernova Inc. (NYSE:GEV) is an energy technology company providing power generation, electrification, and grid solutions to utilities and industrial customers worldwide.
The one-month return of GE Vernova Inc. (NYSE:GEV) was -0.80% while its shares traded between $530.16 and $1,195.94 over the last 52 weeks. On August 13, 2026, GE Vernova Inc. (NYSE:GEV) stock closed at approximately $1039.90 per share, with a market capitalization of about $279.50 billion. Polen Focus Growth Strategy stated the following regarding GE Vernova Inc. (NYSE:GEV) in its Q2 2026 investor letter: We initiated a new position in GE Vernova (NYSE:GEV), one of the few global companies capable of supplying the power generation equipment needed to meet rising electricity demand.
The demand environment for power infrastructure has changed materially in the past 3 years, driven by data center growth, AI infrastructure, electrification, reshoring, and the need to modernize aging grid infrastructure. We think GE Vernova is one of only a handful of companies globally that can meet this moment, particularly in gas turbines and related power equipment. We believe the company has a long runway of demand, improving profitability as a standalone company (similar to GE Aerospace, was previously the power business with the broader GE conglomerate), and meaningful operating leverage as revenue growth accelerates.
As with our aerospace investments, this is not simply a thematic trade for us. We view this as a competitively advantaged business operating in an industry where supply is currently constrained and demand visibility has improved materially. GE Vernova Inc. (NYSE:GEV) is in 29th position our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.
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