Polen Capital, an investment management company, released its fourth-quarter investor letter for “Polen 5Perspectives Small Mid Growth Strategy”. A copy of the letter can be downloaded here. The Polen 5Perspectives Small-Mid Growth Composite Portfolio returned -0.1% gross and -0.3% net of fees in the fourth quarter of 2025, compared to a 0.3% return of the Russell 2500 Growth Index. Following double-digit returns in 2Q and 3Q, SMID caps concluded the year with a 0.3% return in 4Q. Biotech stood out as a major performer during the quarter, expanding beyond the AI theme. The name of the Strategy changed from Polen U.S. SMID Cap Growth to Polen 5Perspectives Small Mid 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 Mid Growth Strategy highlighted stocks like Nutanix, Inc. (NASDAQ:NTNX). Nutanix, Inc. (NASDAQ:NTNX) is a leading enterprise cloud platform company specializing in a hyperconverged infrastructure software. On March 17, 2026, Nutanix, Inc. (NASDAQ:NTNX) stock closed at $41.70 per share. One-month return of Nutanix, Inc. (NASDAQ:NTNX) was 1.16%, and its shares lost 42.75% over the past 52 weeks. Nutanix, Inc. (NASDAQ:NTNX) has a market capitalization of $11.276 billion.

Polen 5Perspectives Small Mid Growth Strategy stated the following regarding Nutanix, Inc. (NASDAQ:NTNX) in its fourth quarter 2025 investor letter:

"Nutanix, Inc. (NASDAQ:NTNX) is a provider of a unified cloud platform that simplifies IT by combining compute, storage, networking, and virtualization into a single software-defined solution. In effect, the company allows businesses to run applications across private data centers, public clouds, and edge locations seamlessly. The stock sold off on the back of earnings as the company cut its 2026 revenue and earnings forecast as it navigates complex customer migrations, a choppy macro backdrop and supply chain and OEM partner related uncertainty."

Nutanix, Inc. (NASDAQ:NTNX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 42 hedge fund portfolios held Nutanix, Inc. (NASDAQ:NTNX) at the end of the fourth quarter, compared to 47 in the previous quarter. In the second quarter of fiscal 2026, Nutanix, Inc. (NASDAQ:NTNX) reported revenue of $723 million, exceeding its guidance of $705 million. While we acknowledge the potential of Nutanix, Inc. (NASDAQ:NTNX) 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 Nutanix, Inc. (NASDAQ:NTNX) and shared the list of oversold NASDAQ stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. This article is originally published at Insider Monkey.