Yahoo Finance Here’s Why Polen Global Growth Strategy Eliminated Nestlé S.A. (NSRGY)
Polen Capital, an investment management company, released its “Polen Global Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund increased 8.10% gross and 7.81% net, respectively, trailing the MSCI ACW Index’s 8.20% return. The market dynamics that were in place at the end of last year persisted in many respects during the first quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Global Growth Strategy featured stocks like Nestlé S.A. (OTC:NSRGY) in its Q1 2024 investor letter. Headquartered in Vevey, Switzerland, Nestlé S.A. (OTC:NSRGY) is a food and beverage company. On April 19, 2024, Nestlé S.A. (OTC:NSRGY) stock closed at $104.14 per share. One-month return of Nestlé S.A. (OTC:NSRGY) was -2.99%, and its shares lost 21.24% of their value over the last 52 weeks. Nestlé S.A. (OTC:NSRGY) has a market capitalization of $273.589 billion.
Polen Global Growth Strategy stated the following regarding Nestlé S.A. (OTC:NSRGY) in its first quarter 2024 investor letter:
"We eliminated our position in Nestlé S.A. (OTC:NSRGY) after trimming it last quarter. Nestlé has served as a solid “safety” holding for many years in the Portfolio. Over the past several years, the company has effectively pruned its product portfolio of low-growth, low-margin, capital-intensive businesses and reinvested the proceeds in more attractive companies to drive margin expansion. At this point, we feel there isn’t much of an opportunity to drive further margin expansion, and the competition is significant for potential acquisition candidates who meet these criteria. As a result, we believe that Nestlé’s ability to achieve our hurdle of low double-digit returns going forward will be more challenging, and we used the proceeds as a source of funds to add to businesses with a higher probability of delivering on our demanded returns."
A filled shopping cart with popular food and beverage items.
Nestlé S.A. (OTC:NSRGY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Nestlé S.A. (OTC:NSRGY) was held by 5 hedge fund portfolios, down from 5 in the previous quarter, according to our database. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
