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Polen Capital: “Adobe (ADBE) Continues to Compound Capital at High Rates”

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Polen Capital, an investment management firm, published its “Polen Global Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. During the first quarter of 2022, the Polen Global Growth Composite Portfolio (the “Portfolio) was down -13.30% and -13.54%, gross and net of fees, versus a decline of -5.35% for the MSCI ACWI (the “Index”).  Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022. 

In its Q1 2022 investor letter, Polen Global Growth Fund mentioned Adobe Inc. (NASDAQ:ADBE) and explained its insights for the company. Founded in 1982, Adobe Inc. (NASDAQ:ADBE) is a San Jose, California-based multinational computer software company with a $204.7 billion market capitalization. Adobe Inc. (NASDAQ:ADBE) delivered a -23.57% return since the beginning of the year, while its 12-month returns are down by -15.79%. The stock closed at $433.42 per share on June 07, 2022.

Here is what Polen Global Growth Fund has to say about Adobe Inc. (NASDAQ:ADBE) in its Q1 2022 investor letter:

"Adobe is a prime example of the COVID-19 air pocket. Adobe continues to compound capital at high rates and exhibit increasing returns to scale. In the case of Adobe, reported growth appears to have decelerated significantly. However, when accounting for foreign exchange impacts and for their fiscal year 2021 having 53 weeks, the adjusted revenue growth was 17% year over year, which is fully in line with their typical growth rates. The 53rd week of the fiscal year 2021 added $267m to total revenue, creating an eight-percentage point difference in reported and adjusted revenue growth. We applaud management’s recent roll- out of Creative Cloud Express to tap into the non-professional market, as well as increasing price in 2022, which we expect to materialize in the back half of the year."

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Our calculations show that Adobe Inc. (NASDAQ:ADBE) ranks 23rd on our list of the 30 Most Popular Stocks Among Hedge Funds. Adobe Inc. (NASDAQ:ADBE) was in 93 hedge fund portfolios at the end of the first quarter of 2022, compared to 94 funds in the previous quarter. Adobe Inc. (NASDAQ:ADBE) delivered a -3.87% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on Adobe Inc. (NASDAQ:ADBE) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.