Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” Q3 2026 investor letter. A copy of the letter can be downloaded here. The fund outperformed the Russell 1000 Growth Index in the third quarter of 2026, as investors began distinguishing between businesses vulnerable to artificial intelligence disruption and those positioned to benefit from AI adoption. The Portfolio returned 4.46% net of fees, outperforming the Index’s 0.92% gain by 3.54 percentage points. However, its year-to-date net return remained negative at 8.11%, compared with a 6.30% gain for the benchmark. Strong relative contributions from software and services holdings helped offset weakness among semiconductor and other direct AI-capital-expenditure beneficiaries, which faced valuation pressure as investors reconsidered spending levels, financing, and future returns on infrastructure investment. The managers continued rebalancing the Portfolio toward businesses with attractive long-term growth prospects, stronger current momentum, and more visible demand, initiating positions in selected semiconductor equipment, power infrastructure, payments, and data-storage companies while trimming or exiting other holdings. The Portfolio also added to selected infrastructure and technology investments and maintained exposure to established software, services, internet, and information-based businesses. Looking ahead, Polen aims to maintain a balanced portfolio of competitively advantaged companies that can withstand shifts in market leadership. The managers remain constructive but cautious about persistent inflation, higher interest rates, energy costs, and valuations, particularly for businesses whose earnings potential lies further in the future. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Polen Focus Growth Strategy highlighted stocks like Quanta Services, Inc. (NYSE:PWR). Quanta Services, Inc. (NYSE:PWR) is a specialty infrastructure contractor providing engineering, construction, and maintenance services for electric power grids, renewable energy, pipelines, and industrial infrastructure. The one-month return of Quanta Services, Inc. (NYSE:PWR) was -16.04% while its shares traded between $408.36 and $788.75 over the last 52 weeks. On October 21, 2026, Quanta Services, Inc. (NYSE:PWR) stock closed at approximately $552.44 per share, with a market capitalization of about $82.06 billion.
Polen Focus Growth Strategy stated the following regarding Quanta Services, Inc. (NYSE:PWR) in its Q3 2026 investor letter:
Additionally, we acquired a new position in Quanta Services, Inc. (NYSE:PWR), North America’s largest specialty infrastructure contractor, mostly focused on the electric power grid in North America. Quanta provides end -to -end services for electric utilities, renewables developers, hyperscalers , pipelines, and industrial customers. We view the company as a picks -and -shovels beneficiary of grid modernization, rising electricity demand, and the broader infrastructure buildout. Importantly, much of this work relates to essential infrastructure needs and multi -year projects, which can be constrained by permitting, supply chain, and skilled labor availability. We believe the company’s capabilities and positioning should support growth over time.
Quanta Services, Inc. (PWR) Offers Exposure to Grid Modernization and AI Infrastructure
Photo by ThisisEngineering RAEng on Unsplash
Quanta Services, Inc. (NYSE:PWR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 100 hedge fund portfolios held Quanta Services, Inc. (NYSE:PWR) at the end of the second quarter, which was 94 in the previous quarter. While we acknowledge the risk and potential of Quanta Services, Inc. (NYSE:PWR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Quanta Services, Inc. (NYSE:PWR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Quanta Services, Inc. (NYSE:PWR) and shared Jim Cramer’s thoughts on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
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This article is originally published at Insider Monkey.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
