Group 1 - Janus Henderson Investors' Global Sustainable Equity Fund reported a significant upswing in global equity markets during Q4 2025, with many indices reaching new all-time highs due to resilient markets, favorable monetary policies, and trends in AI and electrification [1] - The fund's performance was -1.72% for the quarter, underperforming the MSCI World Index, which gained 3.12%, with stock selection in healthcare and lower allocation to real estate positively impacting relative performance, while selections in industrials and financials negatively affected results [1] - The fund maintained a focus on high-quality companies with strong competitive advantages, strategically positioning the portfolio to manage opportunities and challenges in the investment landscape [1] Group 2 - Spotify Technology S.A. was highlighted as a significant stock in the fund's Q4 2025 investor letter, with a market capitalization of $97.25 billion [2] - Spotify's stock closed at $472.48 on March 27, 2026, with a one-month return of -6.86% and a twelve-month loss of 14.10% [2] - Despite solid results, Spotify was one of the largest individual detractors for the fund due to muted investor sentiment related to pricing actions, although the company showed healthy growth in premium subscribers and improved podcast-advertising margins [3] - The company is viewed positively for its long-term fundamentals, with growth levers including pricing strategies and expansion into video and advertising, maintaining significant pricing power and platform breadth in the audio-streaming market [3]

Core Viewpoint - Polen Capital's fourth-quarter 2025 investor letter indicates a challenging market environment with a 5% sell-off followed by a recovery, impacting the performance of its quality-heavy portfolio, particularly in software holdings [1] Group 1: Market Performance - The stock market experienced a severe 5% sell-off in Q4 2025 but quickly recovered to all-time highs, reflecting a V-shaped recovery from April lows [1] - The Polen Global Growth Strategy portfolio returned -2.5% gross of fees and -2.7% net of fees in Q4 2025, underperforming the MSCI All Country World Index, which gained 3.3% [1] Group 2: Spotify Technology S.A. - Spotify Technology S.A. is highlighted as a key stock in the Polen Global Growth Strategy, with a market capitalization of $112.188 billion [2] - As of March 09, 2026, Spotify's stock closed at $544.88 per share, with a one-month return of 14.47% and a 12-month gain of 7.17% [2] - The company has a large and growing user base, with over 600 million active users and more than 250 million paying subscribers, indicating strong engagement and monetization potential [3] Group 3: Business Model and Growth Potential - Spotify operates a two-sided network benefiting from secular growth in streaming and smartphone usage, positioning it as the largest streaming network globally [3] - The company is expected to achieve greater than 20% annual free cash flow growth over the next five years, driven by user growth, conversion of ad-supported listeners to paid subscribers, and increased engagement through new offerings [3]

Core Insights - Artisan Mid Cap Fund's fourth-quarter 2025 performance showed a decline, with Investor Class at -0.44%, Advisor Class at -0.37%, and Institutional Class at -0.35%, compared to -3.70% for the Russell Midcap® Growth Index, indicating a challenging market environment despite strong gains in US equities overall [1] Company Performance - Spotify Technology S.A. (NYSE:SPOT) is highlighted as a significant detractor in the Artisan Mid Cap Fund's portfolio, with a one-month return of -6.79% and a twelve-month decline of 20.58%, despite a market capitalization of $98.073 billion [2][3] - The company is positioned to monetize its leading share in global music distribution through various strategies, including pricing, advertising, and a new super-premium subscription tier, which is expected to act as a catalyst for growth [3] Strategic Developments - Spotify's strategic investments in podcasts, audiobooks, and video are diversifying its business model beyond music, which is dominated by major labels, and improving engagement with video podcasts is contributing positively to user metrics, revenue, and margins [3] - The company is ranked 25th among the 30 Most Popular Stocks Among Hedge Funds, with 120 hedge fund portfolios holding its shares at the end of the fourth quarter, an increase from 116 in the previous quarter [4] Market Sentiment - Despite the potential of Spotify as an investment, there is a belief that certain AI stocks may offer greater upside potential with less downside risk, indicating a competitive landscape for investment opportunities [4] - Jim Cramer has recommended buying Spotify shares during periods of underperformance, suggesting a belief in the long-term value of the stock despite short-term challenges [5]

Core Insights - Spotify Technology S.A. is set to introduce music videos for premium subscribers in the US and Canada by the end of December, aiming to compete with YouTube for market share [1][3] - The addition of video content is expected to enhance user engagement and attract more advertisers, following a beta launch in nearly 100 markets in 2024 [2] - The initial video catalog will include content from popular artists, and data shows that users are significantly more likely to engage with songs that have music videos [3] Company Developments - Spotify's Wrapped feature engaged over 200 million users within 24 hours, marking a 19% year-over-year increase in user engagement [3] - The company plans to increase subscription prices in the US in the first quarter of 2026, following a price hike for premium plans in over 150 markets [3] - Spotify is recognized as a leading audio streaming subscription service, providing access to songs, podcasts, and audiobooks [4]

Core Insights - Spotify's stock has doubled in the past year, driven by growth in premium subscriptions, improved margins, and content initiatives [1][4] - The upcoming earnings report on November 4 will be crucial in determining if this growth trend continues [1][2] Company Overview - Spotify is the leading audio streaming service globally, with over 700 million users across 180 countries and a market value of approximately $130 billion [3] - The company operates on a freemium model alongside a premium subscription service, contributing to its large user base [3] Financial Performance - In Q2 2025, Spotify's total revenues increased by 10% to €4.2 billion, while monthly active users (MAUs) grew by 11% to 696 million [7] - Premium subscribers rose by 12% to 276 million, marking one of the largest addition periods in the company's history [7] - The stock price has seen significant growth, moving from a 52-week low of $376.04 to a peak of $785.00, currently trading at approximately $664.26 [4] Valuation Metrics - Spotify's forward price-earnings ratio stands at 119.6, with a price-to-sales ratio of 7.89 [5] - The company has a return on equity of 13.7% and a profit margin of 7.3%, with a debt-free balance sheet [5] Market Position - The tech and entertainment industry remains stable, with increasing demand for digital content and AI-driven personalization benefiting Spotify [2] - Spotify's size and first-party data provide a competitive advantage as it integrates music, podcasts, and audiobooks into a single platform [2]