Polen Capital: “Euronet (EEFT) has a Robust Business Model and Long-Term Growth Drivers”
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 Euronet Worldwide, Inc. (NASDAQ:EEFT) and explained its insights for the company. Euronet Worldwide, Inc. (NASDAQ:EEFT) is a Leawood, Kansas-based payment service provider company with a $4.0 billion market capitalization. Euronet Worldwide, Inc. (NASDAQ:EEFT) delivered a -14.33% return since the beginning of the year, while its 12-month returns are down by -2.20%. The stock closed at $80.86 per share on November 3, 2023.
Here is what Polen U.S. Small Company Growth has to say about Euronet Worldwide, Inc. (NASDAQ:EEFT) in its Q3 2023 investor letter:
"Euronet Worldwide is an industry leader in providing secure electronic financial transaction solutions. They operate one of the largest independent ATM networks in Europe, are the world's largest payment network for prepaid mobile top-ups, and the second-largest global money transfer company. The stock’s recent weakness was in response to a lowered outlook in the EFT segment, which accounts for ~50% of profits. This segment was impacted by economic pressures on consumer spending in Europe. While we believe this will be a headwind, Euronet Worldwide’s overall revenue and profit growth is still impressive relative to the broader universe. The stock's decline appears to be an overreaction. We believe the company has a robust business model and long-term growth drivers. Euronet Worldwide also benefits from a long-tenured management team with a proven track record of navigating challenging periods."
A consumer in a cafe paying for goods using a mobile payment app.
Our calculations show that Euronet Worldwide, Inc. (NASDAQ:EEFT) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. Euronet Worldwide, Inc. (NASDAQ:EEFT) was in 29 hedge fund portfolios at the end of the second quarter of 2023, compared to 28 funds in the previous quarter. Euronet Worldwide, Inc. (NASDAQ:EEFT) delivered a -7.13% 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.
