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 Globant S.A. (NYSE:GLOB). Globant S.A. (NYSE:GLOB) is a Luxembourg-based technology services company. The one-month return of Globant S.A. (NYSE:GLOB) was 27.82%, and its shares lost 23.58% of their value over the last 52 weeks. On May 13, 2025, Globant S.A. (NYSE:GLOB) stock closed at $140.36 per share with a market capitalization of $6.183 billion.

Polen U.S. Small Company Growth Strategy stated the following regarding Globant S.A. (NYSE:GLOB) in its Q1 2025 investor letter:

"Globant S.A. (NYSE:GLOB) was our largest relative detractor during the quarter. The IT spending environment in recent years has been challenging, and concerns about discretionary enterprise IT spend cloud the outlook for 2025. Stepping back, we continue to have a positive view on Globant. Amidst today's weak environment, with many of its peers reporting negative year-over-year organic revenue growth, Globant still sees a path to >10% revenue growth. We believe shares sold off in excess of the slowdown that impacted the entire industry, and we see a path to solid growth ahead."Why Is Globant SA (GLOB) Plunging In 2025?

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Globant S.A. (NYSE:GLOB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Globant S.A. (NYSE:GLOB) at the end of the fourth quarter which was 29 in the previous quarter. Globant S.A.’s (NYSE:GLOB) fourth quarter revenue reached $642.5 million, representing an increase of 10.6% year-over-year and 4.5% quarter-over-quarter. While we acknowledge the potential of Globant S.A. (NYSE:GLOB) 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.

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In another article, we covered Globant S.A. (NYSE:GLOB) and shared Wasatch Small Cap Growth Strategy's views on the company. 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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