Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, optimism fueled by the Trump election shifted to fear and uncertainty due to apprehension about cost-cutting measures and emerging trade policies. In the first quarter, the fund delivered -10.53% gross, and -10.83% net of fees, compared to a -11.12% return for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Polen U.S. Small Company Growth Strategy highlighted stocks such as Goosehead Insurance, Inc. (NASDAQ:GSHD). Goosehead Insurance, Inc. (NASDAQ:GSHD) is a holding company for Goosehead Financial, LLC, which offers insurance agency services. The one-month return of Goosehead Insurance, Inc. (NASDAQ:GSHD) was -3.28%, and its shares gained 72.96% of their value over the last 52 weeks. On May 13, 2025, Goosehead Insurance, Inc. (NASDAQ:GSHD) stock closed at $105.60 per share with a market capitalization of $3.938 billion.

Polen U.S. Small Company Growth Strategy stated the following regarding Goosehead Insurance, Inc. (NASDAQ:GSHD) in its Q1 2025 investor letter:

"Goosehead Insurance, Inc (NASDAQ:GSHD), a digitally enabled P&C insurance brokerage, delivered better-than-expected 4Q24 results on the top and bottom lines. The company reported healthy business trends across metrics, including robust premium growth and an increasing agent count."

An insurance broker discussing policy options with a homeowner.

Goosehead Insurance, Inc. (NASDAQ:GSHD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Goosehead Insurance, Inc. (NASDAQ:GSHD) at the end of the fourth quarter which was 17 in the previous quarter. While we acknowledge the potential of Goosehead Insurance, Inc. (NASDAQ:GSHD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Goosehead Insurance, Inc. (NASDAQ:GSHD) and shared the list of oversold growth stocks to buy. Goosehead Insurance, Inc. (NASDAQ:GSHD) was a top contributor to the performance of Polen US SMID Company Growth Strategy in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 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.

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