Here’s What Forced Polen Capital to Sell Olo (OLO)
Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio returned -5.00% gross and -5.26% net of fees in the third quarter compared to a -6.84% return for the Russell 2500 Growth Index. The portfolio returned 11.68% (net) YTD, compared to 5.63% for the index. The negative absolute return of the portfolio in the quarter is due to ongoing macroeconomic uncertainty related to interest rates, credit tightening, and an uneven economy from a growth perspective. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Polen U.S. SMID Company Growth Strategy highlighted stocks like Olo Inc. (NYSE:OLO) in the third quarter 2023 investor letter. Headquartered in New York, New York, Olo Inc. (NYSE:OLO) offers a SaaS platform for restaurants. On October 30, 2023, Olo Inc. (NYSE:OLO) stock closed at $5.22 per share. One-month return of Olo Inc. (NYSE:OLO) was -11.68%, and its shares lost 42.00% of their value over the last 52 weeks. Olo Inc. (NYSE:OLO) has a market capitalization of $852.238 million.
Polen U.S. SMID Company Growth Strategy made the following comment about Olo Inc. (NYSE:OLO) in its Q3 2023 investor letter:
"We exited three positions during the quarter, including Copart, Farfetch, and Olo Inc. (NYSE:OLO). Olo is an innovative software as a solution (SaaS) company focused on the restaurant industry. It has a particularly keen position in enterprise digital ordering and has expanded into payments and other critical functions. When we first invested, we noted that point-of-sale incumbents had historically been mismanaged and underinvested in digital, positioning Olo to disrupt the industry. More recently, credible competitors have entered the market, and we have been disappointed with management’s response to these emerging threats. With a broader range of outcomes and an eroding competitive position, we’ve decided to redeploy capital into what we view as superior alternatives."
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Olo Inc. (NYSE:OLO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Olo Inc. (NYSE:OLO) at the end of second quarter which was 13 in the previous quarter.
We previously discussed Olo Inc. (NYSE:OLO) in another article and shares Conestoga Micro Cap Strategy's views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
