Is It a Good Time to Exit Your AppFolio (APPF) Shares?
Polen Capital, an investment management company, released its “Polen U.S. SMID Company Growth” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund underperformed its benchmark, the Russell 2500 Growth Index, and returned -28.35% net of fees. Poor performance of consumer discretionary and financials sectors impacted the fund’s performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
In the second quarter 2022 investor letter, Polen Capital discussed stocks like AppFolio, Inc. (NASDAQ:APPF). Headquartered in Santa Barbara, California, AppFolio, Inc. (NASDAQ:APPF) is a cloud business management solutions provider. On September 29, 2022, AppFolio, Inc. (NASDAQ:APPF) stock closed at $109.40 per share. One-month return of AppFolio, Inc. (NASDAQ:APPF) was 11.58% and its shares lost 9.14% of their value over the last 52 weeks. AppFolio, Inc. (NASDAQ:APPF) has a market capitalization of $3.829 billion.
Here is what Polen Capital specifically said about AppFolio, Inc. (NASDAQ:APPF) in its Q2 2022 investor letter:
“With AppFolio, Inc. (NASDAQ:APPF), a provider of cloud-based property management software to the real estate industry, we eliminated the position to redeploy the capital into what we believe are superior alternatives. We have been positively surprised that Appfolio's stock has held up relatively well this year despite its lack of profitability and high multiple in a market environment that has tended to penalize those dynamics. While the business continues to deliver strong revenue growth, we did not expect heavy investments in sales & marketing, R&D, and G&A to pressure margins to the extent it has. The lack of visibility into when profitability might improve ultimately led us to move on.”
AppFolio, Inc. (NASDAQ:APPF) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held AppFolio, Inc. (NASDAQ:APPF) at the end of the second quarter which was 24 in the previous quarter.
We discussed AppFolio, Inc. (NASDAQ:APPF) in another article and shared Polen Capital’s views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
