Polen Capital Management Portfolio Q3'2025: Top Holdings & Recent Changes
Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at [valuesense.io]
Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.
Polen Capital Management, the growth-oriented investment firm known for its focus on high-quality businesses with durable competitive advantages, shows disciplined portfolio management in its latest 13F filing. Their $30.8B Q3 2025 portfolio reflects significant trimming across major tech holdings alongside bold new bets on semiconductors and AI leaders, signaling a recalibration toward emerging growth opportunities despite high turnover.
Portfolio Snapshot: Concentrated Quality in a Dynamic Market
Portfolio Highlights (Q3 2025): - Market Value: $30.8B - Top 10 Holdings: 56.5% - Portfolio Size: 232 -9 - Average Holding Period: 6 quarters - Turnover: 47.8%
Polen Capital's $30.8B portfolio maintains its hallmark concentration, with the top 10 holdings commanding 56.5% of assets—a level that underscores the firm's conviction in a select group of high-conviction names. The reduction in portfolio size to 232 positions (down 9) alongside 47.8% turnover indicates active management, pruning underperformers while rotating into perceived higher-upside opportunities. This approach aligns with Polen Capital's long-term strategy of owning "compounding machines"—businesses capable of sustained earnings growth through superior moats.
The average holding period of 6 quarters suggests a balance between patience and adaptability, avoiding the pitfalls of excessive trading while responding to valuation shifts. In a market dominated by tech megacaps, Polen's moves reveal a nuanced strategy: significant reductions in legacy leaders like ORCL and AMZN, paired with aggressive additions in AI-driven plays. Tracking this via the Polen Capital portfolio page on ValueSense highlights how their 13F filings continue to offer actionable insights for investors seeking quality growth exposure.
This portfolio evolution demonstrates Polen Capital's risk-aware stance, maintaining heavy tech weighting but diversifying within subsectors like semiconductors and cloud infrastructure. With turnover nearly 48%, the firm shows willingness to let go of winners at peak valuations, a hallmark of disciplined growth investing.
Top Holdings Breakdown: Tech Trims and AI Bets
Polen Capital's portfolio remains tech-heavy, with notable adjustments across its largest positions. Leading the pack is Oracle Corporation (ORCL) at 8.5% $2,612.3M, reduced by 22.49%—possibly signaling concerns over cloud growth deceleration. Microsoft Corporation (MSFT) follows closely at 8.4% $2,600.2M, trimmed 7.48%, while Amazon.com, Inc. (AMZN) at 8.0% $2,469.4M saw a 19.22% reduction, reflecting profit-taking in e-commerce and AWS amid competitive pressures.
Further down, Shopify Inc. (SHOP) holds 5.3% $1,643.8M after a sharp 24.71% cut, Mastercard Incorporated (MA) at 5.1% $1,559.2M reduced 8.38%, and Visa Inc. (V) at 4.8% $1,481.7M down 22.65%. A standout new entrant is Broadcom Inc. (AVGO) at 4.8% $1,479.9M via a full "Buy," betting on its AI chip momentum. Eli Lilly and Company (LLY) resides at 4.0% $1,238.3M, reduced 6.61%, and NVIDIA Corporation (NVDA) at 3.8% $1,174.9M exploded with a 36,850.09% add—likely from a small base to significant scale.
Extending beyond the top 10, Alphabet Inc. (GOOG) at 3.7% $1,130.1M faced a 29.29% reduction, rounding out the key changes. These moves prioritize AI and semiconductor exposure over traditional cloud and payments, with Polen Capital trimming winners to fund high-conviction pivots.
What the Portfolio Reveals About Polen Capital's Strategy
Polen Capital's Q3 actions paint a picture of a firm navigating tech euphoria with precision: - Quality compounding focus: Emphasis on businesses with wide moats, like software leaders (MSFT, ORCL), even as positions are trimmed for reallocation. - Tech sector dominance with AI tilt: Over half the top 10 in technology, shifting toward semiconductors (AVGO, NVDA) amid cloud slowdowns. - Healthcare diversification: LLY's presence adds growth via GLP-1 drugs, balancing tech volatility. - Risk management via turnover: 47.8% turnover and position trims (e.g., SHOP -24.71%) show active valuation discipline. - U.S.-centric with global reach: Primarily U.S. megacaps, leveraging domestic innovation leaders.
This reveals a strategy prioritizing long-term earnings power over short-term momentum, using reductions to harvest gains and fuel AI-themed bets.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Oracle Corporation (ORCL) | $2,612.3M | 8.5% | Reduce 22.49% |
| Microsoft Corporation (MSFT) | $2,600.2M | 8.4% | Reduce 7.48% |
| Amazon.com, Inc. (AMZN) | $2,469.4M | 8.0% | Reduce 19.22% |
| Shopify Inc. (SHOP) | $1,643.8M | 5.3% | Reduce 24.71% |
| Mastercard Incorporated (MA) | $1,559.2M | 5.1% | Reduce 8.38% |
| Visa Inc. (V) | $1,481.7M | 4.8% | Reduce 22.65% |
| Broadcom Inc. (AVGO) | $1,479.9M | 4.8% | Buy |
| Eli Lilly and Company (LLY) | $1,238.3M | 4.0% | Reduce 6.61% |
| NVIDIA Corporation (NVDA) | $1,174.9M | 3.8% | Add 36,850.09% |
The table highlights Polen Capital's concentrated firepower, with the top three holdings alone exceeding 25% of the portfolio despite broad reductions. This 56.5% top-10 weighting exemplifies their high-conviction model, where bets like the massive NVDA add and AVGO buy signal AI optimism, offset by trims in overvalued names like SHOP and V.
Such concentration amplifies returns from winners but demands precise timing—evident in the balanced reductions across payments (MA, V) and e-commerce (AMZN). The portfolio's structure supports Polen Capital's thesis: own the best, size aggressively, and adjust ruthlessly.
Investment Lessons from Polen Capital Management
- Trim winners proactively: Reductions in ORCL 22.49% and AMZN 19.22% show discipline in taking profits at elevated valuations.
- Bet big on moat expansion: The "Buy" in AVGO and explosive NVDA add highlight conviction in AI infrastructure.
- Balance concentration with diversification: 56.5% in top 10, yet 232 positions mitigate single-stock risk.
- Monitor turnover for signals: 47.8% rate flags active management—use it to gauge conviction shifts.
- Prioritize compounding quality: Focus on durable growers like MSFT and LLY, regardless of short-term noise.
Looking Ahead: What Comes Next?
Polen Capital's Q3 positioning sets up for continued AI and quality growth themes, with trims freeing capital—potentially from the reduced 232 positions—for new deployments. The NVDA and AVGO builds suggest deeper semiconductor exposure amid 2026 AI capex cycles. Healthcare via LLY provides a hedge against tech corrections.
In a high-valuation environment, expect further rotations from cloud laggards to edge computing or biotech innovators. Market volatility could prompt opportunistic buys, with the firm's 6-quarter hold period favoring patience. Track via ValueSense for Q4 insights.
FAQ about Polen Capital Management Portfolio
Q: What drove Polen Capital's major reductions in Q3 2025?
A: Significant trims in ORCL -22.49%, AMZN -19.22%, and SHOP -24.71% likely reflect profit-taking after strong runs, reallocating to higher-conviction AI plays like NVDA.
Q: Why does Polen Capital maintain such high portfolio concentration?
A: With 56.5% in the top 10, the firm bets on deep research into quality compounders, accepting volatility for superior long-term returns—balanced by 232 total positions.
Q: What does the 47.8% turnover indicate about their strategy?
A: It signals active management, pruning positions amid valuation shifts while holding core names like MSFT, contrasting passive indexing.
Q: How tech-heavy is Polen Capital's portfolio, and why?
A: Dominated by tech (e.g., MSFT, AVGO), reflecting belief in innovation-driven growth, with healthcare (LLY) for diversification.
Q: How can I track Polen Capital's portfolio changes?
A: Follow quarterly 13F filings (45-day lag post-quarter-end) on ValueSense at https://valuesense.io/superinvestors/polen-capital for real-time analysis, historical trends, and visualizations.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!