Polen Focus Growth Strategy Sold Workday (WDAY) Amid Slowing Momentum in Enterprise Software

Polen Capital Management Llc released its “Polen Focus Growth Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, the Polen Focus Growth strategy delivered a -1.37% gross return, underperforming the Russell 1000 Growth Index (+1.12%) and the S&P 500 (+2.66%), as concentrated mega‑cap leadership and AI valuation concerns drove market volatility. The fund faced headwinds from market rotation and valuation pressures but remained disciplined in its investment approach, focusing on companies with durable competitive advantages and diversified earnings. Portfolio adjustments were made to optimize long-term growth potential, and despite short-term challenges, the fund maintains a constructive medium- to long-term outlook, expecting broader market opportunities beyond narrow leadership trends to support balanced returns for investors. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Polen Capital Management highlighted stocks like Workday, Inc. (NASDAQ:WDAY). Workday, Inc. (NASDAQ:WDAY) is a leading provider of cloud-based enterprise software, helping organizations manage finance, HR, and operations with scalable and integrated solutions. The one-month return of Workday, Inc. (NASDAQ:WDAY) was -12.20% while its shares traded between $186.56 and $283.68 over the last 52 weeks. On January 27, 2026, Workday, Inc. (NASDAQ:WDAY) stock closed at approximately $188.58 per share, with a market capitalization of about $49.6 billion.

Polen Capital Management Llc stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Polen Focus Growth Strategy’s Q4 2025 investor letter:

“In Q4 2025, we initiated a new position in Intuitive Surgical and sold our positions in Netflix and Workday, Inc. (NASDAQ:WDAY). We exited our position in Workday as the company’s revenue growth continues to decelerate. The core human capital management business is fairly mature and now facing cyclical headwinds while the newer financials suite is growing slower than expected.”

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Workday, Inc. (NASDAQ:WDAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Workday, Inc. (NASDAQ:WDAY) at the end of the third quarter, which was 76 in the previous quarter. While we acknowledge the risk and potential of Workday, Inc. (NASDAQ:WDAY) 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’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.