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 Netflix, Inc. (NASDAQ:NFLX). Netflix, Inc. (NASDAQ:NFLX) is a streaming platform with a market capitalization of $423.87 billion. The one-month return of Netflix, Inc. (NASDAQ:NFLX) was -2.44%, and its shares gained 62.84% of their value over the last 52 weeks. On March 5, 2025, Netflix, Inc. (NASDAQ:NFLX) stock closed at $990.92 per share.

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

"The top absolute contributors were Amazon, Shopify, and Netflix, Inc. (NASDAQ:NFLX). Beyond these top relative contributors, it’s worth noting Netflix as a top absolute contributor as the company continues to extend its lead over its streaming competitors as evidenced—among other things—by 10% YoY subscriber growth in North America, its most mature market. Customers are clearly finding significant value in Netflix’s content offering, and that—along with opportunities to scale the advertising-based video-on-demand segment—should drive healthy double-digit earnings growth for the foreseeable future."

A home theater with family members enjoying streaming content together.

Netflix, Inc. (NASDAQ:NFLX) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 144 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the fourth quarter compared to 121 in the third quarter. While we acknowledge the potential of Netflix, Inc. (NASDAQ:NFLX) 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 Netflix, Inc. (NASDAQ:NFLX) and shared the list of stocks on Jim Cramer’s radar. 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.