Polen Capital, an investment management company, released its fourth-quarter investor letter for “Polen 5Perspectives Small Growth Strategy”. A copy of the letter can be downloaded here. The Polen 5Perspectives Small Growth Composite Portfolio returned -1.3% gross and -1.5% net of fees in the fourth quarter of 2025, compared to a 1.2% return of the Russell 2000 Growth Index. Following double-digit returns in 2Q and 3Q, small caps concluded the year with a 1.2% return in 4Q. Biotech stood out as a major performer during the quarter, expanding beyond the AI theme. The small-cap asset class has gained attention due to declining interest rates and improving earnings growth, but the firm is most excited about its structural tailwinds, including the rapid pace of innovation and the opportunity it presents for disciplined investors. Over the fourth quarter, the Strategy nearly doubled its Biotech exposure due to opportunities presented by rising interest rates, M&A, and AI tailwinds. The name of the Strategy changed from Polen U.S. Small Cap Growth to Polen 5Perspectives Small Growth, to emphasize the significance of the 5 viewpoints framework and the influence of perspective in investing. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Polen 5Perspectives Small Growth Strategy highlighted stocks like Argan, Inc. (NYSE:AGX). Argan, Inc. (NYSE:AGX) through its subsidiaries, provides construction, commissioning, maintenance and services to power generation market. On February 23, 2026, Argan, Inc. (NYSE:AGX) stock closed at $441.71 per share. One-month return of Argan, Inc. (NYSE:AGX) was 21.82%, and its shares gained 251.76% over the past 52 weeks. Argan, Inc. (NYSE:AGX) has a market capitalization of $6.128 billion.
Polen 5Perspectives Small Growth Strategy stated the following regarding Argan, Inc. (NYSE:AGX) in its fourth quarter 2025 investor letter:
“Argan, Inc. (NYSE:AGX) is a construction company that, among other things, constructs gas-fired power plants. In recent years the company has benefited from a growing backlog of projects to construct power plants that supply electricity to data centers running AI workloads. Specific to the period, Argan announced two new major contract wins in the Texas market—one for a 1,350 megawatt combined-cycle power plant and the other for a 860 megawatt natural gas-fired power plant. Argan appears to be well positioned to capitalize on a multi-year investment cycle to build out power infrastructure as companies race to bring data centers online.”
