Should You Sell BigCommerce Holdings (BIGC) Due to its Deteriorating Profitability?

Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -25.81% net of fees compared to a -19.25% return for the Russell 2000 Growth Index. The fund underperformed in the second quarter due to widespread economic slowdown. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the second quarter 2022 investor letter, Polen Capital discussed stocks like BigCommerce Holdings, Inc. (NASDAQ:BIGC). Headquartered in Austin, Texas, BigCommerce Holdings, Inc. (NASDAQ:BIGC) is a SaaS Platform Operator. On September 29, 2022, BigCommerce Holdings, Inc. (NASDAQ:BIGC) stock closed at $14.99 per share. One-month return of BigCommerce Holdings, Inc. (NASDAQ:BIGC) was -2.41% and its shares lost 70.69% of their value over the last 52 weeks. BigCommerce Holdings, Inc. (NASDAQ:BIGC) has a market capitalization of $1.1 billion.

Here is what Polen Capital specifically said about BigCommerce Holdings, Inc. (NASDAQ:BIGC) in its Q2 2022 investor letter:

“Finally, we sold BigCommerce Holdings, Inc. (NASDAQ:BIGC) due to clear Flywheel violations. We are concerned about the company’s deteriorating profitability and reliance on external sources of capital. BigCommerce is facing numerous challenges including developer resources in Ukraine and the potential for staffing challenges in a still challenging labor market for engineers.”

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BigCommerce Holdings, Inc. (NASDAQ:BIGC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held BigCommerce Holdings, Inc. (NASDAQ:BIGC) at the end of the second quarter which was 28 in the previous quarter.

We discussed BigCommerce Holdings, Inc. (NASDAQ:BIGC) in another article and shared Polen Capital’s views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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