Polen Capital Management Llc released its "Polen Focus Growth Strategy" Q2 2026 investor letter. A copy of the letter can be downloaded here. Polen Focus Growth returned 6.33% (net of fees) in the second quarter of 2026, significantly underperforming the Russell 1000 Growth Index's 16.74% gain, as the market rally remained narrowly focused on AI infrastructure and semiconductor stocks.
During the quarter, Polen Capital repositioned the portfolio toward companies benefiting from structural growth in AI infrastructure, power demand, and aerospace. Looking ahead, the managers remain confident in the long-term earnings potential of the portfolio but acknowledge that changing market dynamics and the rising opportunity cost of patience require a more nimble approach. They remain focused on competitively advantaged businesses with durable growth prospects, while selectively participating in AI infrastructure, commercial aerospace, and power infrastructure opportunities where supply constraints and long-term demand could support sustained earnings growth.
In addition, please check the Fund's top five holdings to know its best picks in 2026. In its second-quarter 2026 investor letter, Polen Focus Growth Strategy highlighted stocks like GE Aerospace (NYSE:GE). GE Aerospace (NYSE:GE) is an aviation technology company that designs and manufactures aircraft engines, systems, and related services for commercial and defense markets.
The one-month return of GE Aerospace (NYSE:GE) was 3.39% while its shares traded between $263.80 and $388.84 over the last 52 weeks. On August 13, 2026, GE Aerospace (NYSE:GE) stock closed at approximately $365.33 per share, with a market capitalization of about $374.19 billion. Polen Focus Growth Strategy stated the following regarding GE Aerospace (NYSE:GE) in its Q2 2026 investor letter: We initiated a new position in GE Aerospace (NYSE:GE), which we view as one of the highest-quality industrial businesses in the world.
Following the multi-year separation of the former GE conglomerate, investors can now own GE Aerospace as a standalone company focused almost entirely on aircraft engines and related services. GE commands a dominant position in commercial jet engines, operating in a global oligopoly alongside Safran, Rolls-Royce, and Pratt & Whitney. The company's engines power roughly three out of every four commercial flights globally, supported by an installed base of approximately 50,000 engines and a backlog of roughly $190 billion.
The most attractive part of GE Aerospace's business, in our view, is the commercial engine services segment. Approximately 75% of GE's commercial segment revenue comes from servicing existing engines, creating a durable, high-margin revenue stream attached to long-duration assets. The structural shortage of new aircraft has forced airlines to extend the lives of existing fleets, which increases demand for aftermarket engine services.
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