Polen Global Growth Sold Globant (GLOB) for a Better Risk Opportunity

Polen Capital, an investment management company, released its “Polen Global Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The market entered 2025 embracing the new U.S. administration’s pro-growth policies, often overlooking potential tariff and valuation headwinds. International stocks have outperformed U.S. stocks since 2009. Despite the positives, global equities remained vulnerable due to geopolitical tensions and growing uncertainty. The Strategy returned 8.16% gross of fees (7.87% net of fees) in the quarter compared to the MSCI ACW Index’s 11.53% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Polen Global Growth Strategy highlighted stocks such as Globant S.A. (NYSE:GLOB). Globant S.A. (NYSE:GLOB) is a Luxembourg-based technology services company. The one-month return of Globant S.A. (NYSE:GLOB) was -23.81%, and its shares lost 66.85% of their value over the last 52 weeks. On August 19, 2025, Globant S.A. (NYSE:GLOB) stock closed at $68.65 per share, with a market capitalization of $3.024 billion.

Polen Global Growth Strategy stated the following regarding Globant S.A. (NYSE:GLOB) in its second quarter 2025 investor letter:

"We’ve fully exited our position in Globant S.A. (NYSE:GLOB) following the company’s weaker-than-expected Q1 2025 earnings report and disappointing FY25 revenue guidance. While the company has managed to maintain outsized revenue growth relative to its IT services peers for several quarters, recent guidance projecting low single-digit revenue growth for FY25 brings its outlook roughly in line with the peer group. This outcome speaks to the more protracted IT services spending weakness that may continue, and the potentially more discretionary nature of Globant’s business model (which is heavily consulting-based and less reliant on multi-year outsourcing contracts than many larger competitors). Globant may be worth revisiting at a later date, if and when growth reaccelerates. For now, however, we see better risk / reward opportunities elsewhere."

Globant S.A. (NYSE:GLOB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Globant S.A. (NYSE:GLOB) at the end of the first quarter, which was 25 in the previous quarter. Globant S.A. (NYSE:GLOB) reported revenues of $614.2 million in Q2 2025, reflecting a 4.5% year-over-year growth. While we acknowledge the potential of Globant S.A. (NYSE:GLOB) 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.

In another article, we covered Globant S.A. (NYSE:GLOB) and shared the list of best mid cap AI stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 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.