Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. equities have experienced a significant performance surge over the past two years. In the fourth quarter, the strategy returned 4.9% (gross) and 4.65% (net) compared to 7.07% for the Russell 1000 Growth Index and 2.41% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Polen Focus Growth Strategy emphasized stocks such as Adobe Inc. (NASDAQ:ADBE). Adobe Inc. (NASDAQ:ADBE) is a diversified software company that operates through Digital Media, Digital Experience, and Publishing and Advertising. The one-month return of Adobe Inc. (NASDAQ:ADBE) was 3.64%, and its shares lost 18.85% of their value over the last 52 weeks. On March 5, 2025, Adobe Inc. (NASDAQ:ADBE) stock closed at $451.24 per share with a market capitalization of $196.24 billion.

Polen Focus Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q4 2024 investor letter:

"Zoetis and Adobe Inc. (NASDAQ:ADBE) were also notable absolute detractors. Adobe is another holding that's come under pressure this year due to concerns about delays in the company’s ability to monetize its generative AI Firefly offering. Our research suggests that even if open-source generative AI tools proliferate, creative professionals will still need to curate and edit that content in Adobe tools."

A team of engineers and scientists collaborating at a workstation surrounded by their applications and solutions.

Adobe Inc. (NASDAQ:ADBE) is in 13th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 117 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of the fourth quarter compared to 123 in the third quarter. While we acknowledge the potential of Adobe Inc. (NASDAQ:ADBE) 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 discussed Adobe Inc. (NASDAQ:ADBE) and shared the list of tech stocks with high upside potential. In addition, please check out our hedge fund investor letters Q4 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.