Polen Capital is Disappointed with OLO’s Response to Emerging Threats From Competitors
Polen Capital, an investment management firm, released its "U.S. Small Company Growth Fund" third quarter 2023 investor letter, a copy of which can be downloaded here. In the third quarter, the U.S. Small Company Growth Composite Portfolio, referred to as the "Portfolio," posted returns of -3.66% gross and -3.97% net of fees. This performance is in contrast to the -7.32% return of the Russell 2000 Growth Index, known as the "Index." Take a moment to review the fund's top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Polen U.S. Small Company Growth mentioned Olo Inc. (NYSE:OLO) and explained its insights for the company. Olo Inc. (NYSE:OLO) is a New York, New York-based B2B SaaS company with a $955.09 million market capitalization. Olo Inc. (NYSE:OLO) delivered a -7.84% return since the beginning of the year, while its 12-month returns are down by -28.18%. The stock closed at $5.76 per share on November 3, 2023.
Here is what Polen U.S. Small Company Growth has to say about Olo Inc. (NYSE:OLO) in its Q3 2023 investor letter:
"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 compelling alternatives."
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Our calculations show that Olo Inc. (NYSE:OLO) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. Olo Inc. (NYSE:OLO) was in 16 hedge fund portfolios at the end of the second quarter of 2023, compared to 13 funds in the previous quarter. Olo Inc. (NYSE:OLO) delivered a -21.85% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
