Polen Capital Management released its third-quarter 2025 investor letter for the Polen U.S. Small Cap Growth Strategy, boasting a 21.4% gross and 21.1% net of fees return, outperforming the Russell 2000 Growth Index at 12.2%. Download the letter to see the top 5 holdings and best picks for 2025.

Highlighted in the investor letter was Powell Industries, Inc. (NASDAQ: POWL), which designs custom-engineered equipment and systems. Powell Industries, Inc. (NASDAQ: POWL) saw a one-month return of -21.84% and closed at $285.29 per share on November 19, 2025, with a market cap of $3.443 billion.

According to Polen U.S. Small Cap Growth Strategy’s investor letter, Powell Industries, Inc. (NASDAQ: POWL) was a top contributor to the portfolio’s performance in the quarter. The company, benefiting from data center capex spending and onshoring trends, specializes in switchgear systems for industrial complexes.

Powell Industries, Inc. (NASDAQ: POWL) is not among the 30 most popular stocks among hedge funds. The company reported total revenue of $286 million in the third quarter of fiscal 2025. While acknowledging Powell Industries’ potential, certain AI stocks may offer greater upside potential and less downside risk.

Read more at Yahoo Finance: Powell Industries (POWL) Benefited from Data Center CapEx Spending