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Here’s Why Polen Capital Became Particularly Impressed in AppFolio (APPF)

·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 AppFolio, Inc. (NASDAQ: APPF), and shared their insights on the company. AppFolio, Inc. is a Goleta, California-based software company that currently has a $4.6 billion market capitalization. Since the beginning of the year, APPF delivered a -25.58% return, while its 12-month gains are down by -14.01%. As of May 24, 2021, the stock closed at $133.98 per share.

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

"Finally, AppFolio is a vertical software-as-service (SaaS) provider to the multifamily real estate/property management market. The company is notable for its customer connection, which has allowed it to develop new technology for its customers with success. In addition to strong customer growth, we think AppFolio is a master of selling more to existing customers because of this deep connection and commitment to customer service. We have been particularly impressed by its response to the pandemic, which it has used to be even more valuable to many of its customers and accelerate the business. In our view, the potential for long-term compounding continues to be strong for AppFolio."

15 biggest Canadian software companies
15 biggest Canadian software companies

Copyright: welcomia / 123RF Stock Photo

Our calculations show that AppFolio, Inc. (NASDAQ: APPF) 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, AppFolio, Inc. was in 12 hedge fund portfolios, compared to 19 funds in the fourth quarter of 2020. APPF delivered a -17.35% 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.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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