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Polen Capital: “We Continue to be Excited About the Long-Term Prospects of Goosehead (GSHD)”

·3 min read

Polen Capital, an investment management firm, published its “Polen U.S. Small Company Growth” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 0.99% was delivered by the fund for the first quarter of 2021, trailing its Russell 2000 Growth benchmark that delivered a 4.87% gain for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Polen U.S. Small Company Growth Fund, in its Q1 2021 investor letter, mentioned Goosehead Insurance, Inc (NASDAQ: GSHD), and shared their insights on the company. Goosehead Insurance, Inc is a Westlake, Texas-based insurance company that currently has a $3.1 billion market capitalization. Since the beginning of the year, GSHD delivered a -32.61% return, while its 12-month gains are up by 40.02%. As of May 24, 2021, the stock closed at $84.07 per share.

Here is what Polen U.S. Small Company Growth Fund has to say about Goosehead Insurance, Inc in its Q1 2021 investor letter:

"Goosehead Insurance is a revolutionary business model and technology platform for the insurance industry. It operates as a franchise business model, which generates prolific free cash flow that management reinvests in an effort to strengthen its competitive position, customer experience, employee training, and core technology. The company continues to experience among the fastest and most profitable growth in the Portfolio since our purchase in the third quarter 2020. Goosehead grew revenue by 50% in the fourth quarter of 2020. In short, we continue to be excited about the long-term prospects of this flywheel company."

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Our calculations show that Goosehead Insurance, Inc (NASDAQ: GSHD) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Goosehead Insurance, Inc was in 24 hedge fund portfolios, compared to 21 funds in the fourth quarter of 2020. GSHD delivered a -49.16% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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