Polen Capital, an investment management company, released its second-quarter 2026 investor letter for “Polen 5Perspectives Small-Mid Growth Strategy”. A copy of the letter can be downloaded here. Polen 5Perspectives Small-Mid Growth Composite Portfolio returned 28.4% gross and 28.2% net of fees, respectively, compared to the 24.0% return of the Russell 2500 Growth Index. Markets rebounded strongly during the quarter as concerns over economic growth, trade policy, and the durability of AI investment eased, helping SMID-cap growth stocks deliver one of their strongest quarterly performances in the past 25 years. The firm highlighted that continued investment by hyperscalers and enterprise customers reinforced confidence in the AI infrastructure cycle, while growing electricity demand supported opportunities across power generation, grid infrastructure, and electrification. Aerospace and defense modernization also remained key long-term secular growth themes. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Polen 5Perspectives Small-Mid Growth Strategy highlighted Fastly, Inc. (NASDAQ:FSLY). Fastly, Inc. (NASDAQ:FSLY) operates an edge cloud platform for processing, serving, and securing its customer’s applications. On July 21, 2026, Fastly, Inc. (NASDAQ:FSLY) closed at $20.73 per share. One-month return of Fastly, Inc. (NASDAQ:FSLY) was 23.87% and its shares gained 177.95% over the past 52 weeks. Fastly, Inc. (NASDAQ:FSLY) has a market capitalization of $3.17 billion with a 52-week trading range between $6.29 – $34.82
Polen 5Perspectives Small-Mid Growth Strategy stated the following regarding Fastly, Inc. (NASDAQ:FSLY) in its Q2 2026 investor letter:
“Fastly, Inc. (NASDAQ:FSLY) is an edge cloud platform that helps customers deliver, secure, and optimize digital experiences. Shares underperformed during the quarter amid continued investor concerns surrounding growth durability and competitive dynamics within the content delivery and edge computing markets. During the period, we exited the position as our process identified more attractive opportunities elsewhere and our conviction in the risk reward profile diminished.”
Fastly, Inc. (NASDAQ:FSLY) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Fastly, Inc. (NASDAQ:FSLY) at the end of the first quarter which was 37 in the previous quarter. In Q1 2026, Fastly, Inc. (NASDAQ:FSLY) reported revenue increased 20% year-over-year to $173 million. While we acknowledge the potential of Fastly, Inc. (NASDAQ:FSLY) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.